Following the 2007–2008 global food crisis, agricultural producers have invested in large tracts of land in developing countries. We investigate how the arrival of large-scale farms changes inter-personal trust and reciprocity, important components of social capital, in traditional Zambian villages. Using experimental methods, we elicit trust and reciprocal behaviour in villages that lie near large-scale farms and compare them with control villages at a distance. Our data reveal greater trust in villages close to large-scale farms, which is in line with communal coping as a response to the arrival of the large farms. Reciprocity is more frequent after farm employment, which points to reputation building.
Menusch Khadjavi, Kacana Sipangule Khadjavi, and Rainer Thiele (2021). Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation. The Economic Journal, Volume 131, Issue 633, Pages 420–449