Diaspora as the boundary-spanners: The role of trust in business facilitation

Abstract

Diasporas play a number of important roles in facilitating trade and investments between their countries of origin (COO) and countries of residence (COR). This paper explores what makes them so effective in these roles by indicating how they can foster trust across diverse cultures. We explain how members of ethnic diasporas can leverage the trust that they have built with their COR (through education and/or work experience) and their COO (through ethnic ties) to bring about trade-related benefits to both their COO and COR. Examples from two of the largest and most prominent diasporas today, the Chinese and the Indian diasporas, are used to illustrate these issues. The paper reviewed some of the roles that modern diasporas can play and explained how trust can constitute an important aspect in each of these roles. It then explored how diasporas are uniquely positioned to generate the trust that is so essential to these roles. Next, some of the evolving modern issues that affect diasporas are identified in the context of how they could foster and utilise trust. Finally, the paper discussed the implications of trust for diasporas and trade facilitation.