Cooperation makes beliefs: Weather variation and social trust in Vietnam

Abstract

Many studies have found that social trust plays crucial roles in economic development through their facilitation of cooperation and network connections amongst the members of a community. However, there are few studies that examine the relationship between the natural environment and social trust. In this paper, we examine empirically the hypothesis that the development of trust is based on the demand for cooperation to cope with natural weather fluctuations, which are considered as the main risks for agricultural activities. To test our hypothesis, we use data from the 2008 Vietnam Access to Resources Household Survey to investigate the relationship between weather variability in the past and current trust. The result shows that individuals who are heavily threatened by negative weather fluctuation seem to have higher level of trust in neighbours and others within their close group. The evidence shows that the relationship between weather variation on social trust may be transmitted through strengthening the cooperation amongst village peasants and family ties as they cope with risk and uncertainty. There is also evidence that households with a higher proportion of agricultural income tend to trust people more.