Steven Buck, Yoko Kusunose and Jeffrey Alwang
The purpose of this work is to experimentally measure trust and study its relationship to group loan allocation within a community bank.
Abstract
Purpose
The purpose of this work is to experimentally measure trust and study its relationship to group loan allocation within a community bank.
Design/methodology/approach
An artefactual field experiment is run to capture a measure of trust that mimics aspects of trusting behavior in a community bank. The experimental design and empirical setting take into account risk and altruism, two known confounders of trust measures. Regression analysis is used to estimate the relationship between a novel measure of trust and the loan amount a borrower receives from their rural community bank.
Findings
The trust measure has a statistically significant, positive relationship with loan size. A one standard deviation increase in the trust measure corresponds to a 13.3 percent increase in the loan amount.
Social implications
Results of the study suggest that, for community banks, trust in a borrower plays a large role in screening applicants and therefore determining loan size. Several such banks have considered graduating to commercial credit. However, given the outsize role of trust in lending decisions, it is not clear if commercial lending models – which rely less on social capital – will work.
Originality/value
A new trust game is developed that captures relationship-specific measures of directed trust that community bank members have towards each borrower. The trust measure is also context-specific as play in the game is analogous to how community bank members trust some borrowers (more than others) with larger loans. The emphasis on relationship- and context-specific trust measures is key to interpreting results from artefactual field experiments.
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Jeffrey Alwang, Alexis Villacis and Victor Barrera
This study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased export growth, and the fragility of the…
Abstract
Purpose
This study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased export growth, and the fragility of the credence-based export model. Much of the growth in value of yerba mate exports from Paraguay is due to positioning of the good within the universe of products where consumption is driven by perceptions of sustainable production and health benefits to consumers. Credence claims for yerba mate—benefits to indigenous producing communities, environmental sustainability under certain production processes, healthful alternatives to energy drinks—are now widely known, but the growth of this awareness came via a new entrepreneurial strategy of a single firm.
Design/methodology/approach
Primary information was collected through interviews of actors in the Paraguayan yerba mate value chain during spring/summer 2020. These included representatives from three exporting companies, processors, public institutions and indigenous producers.
Findings
The Paraguayan yerba mate export boom was stimulated through the careful cultivation of an image of healthful consumption and sustainable production processes. The cost of this cultivation was borne mainly by a single firm. Findings suggest that future marketing efforts will need to reinforce credence claims, highlighting the benefits to indigenous producers.
Research limitations/implications
This case study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased growth, and the fragility of the credence-based model.
Originality/value
Findings are supported by field interviews with value chain participants and detailed analysis of extant data. The paper is the first to discuss the fragility of relying on credence attributes for long-term demand growth.
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Alexis Villacis, Jeffrey Alwang and Victor Barrera
Motivated by transformations in global food systems and increasing demand for multidimensional credence attributes, the authors analyze cacao value chains in Ecuador – the main…
Abstract
Purpose
Motivated by transformations in global food systems and increasing demand for multidimensional credence attributes, the authors analyze cacao value chains in Ecuador – the main producer of fine and flavor cacao worldwide. The authors identify opportunities and discuss how private and public sector initiatives can help meet emerging challenges.
Design/methodology/approach
Primary information was collected through interviews of actors in the Ecuadorian industry during spring/summer 2020, including cacao producer associations, exporter associations, chocolate processing firms, public institutions and local universities. Two focus groups were also conducted with producers from associations in the Ecuadorian Amazon.
Findings
Findings suggest new opportunities for cacao producers and chocolate processors have emerged from the global market transformation. To exploit these, firms need to personalize and differentiate their products, for example, by using quality certifications such as organic and fair trade. Market developments, such as European cadmium regulations and the necessity of worldwide traceability systems, are driving exporters to enhance Ecuador’s cacao value chains. The sector still requires coordination to reap the benefits associated with demands for credence attributes.
Originality/value
Findings are supported by two case studies. The first focuses on how associativity can help those producing high-quality beans to differentiate themselves in modern agri-food markets. The second describes the success of a local chocolate firm and its links with local farmers.
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Atsuko Kawakami, Subi Gandhi, Derek Lehman and Jennie Jacobs Kronenfeld
The disparities of COVID-19 vaccination rates between the rural and urban areas have become apparent during this pandemic. There is a need to understand the root causes of vaccine…
Abstract
Purpose
The disparities of COVID-19 vaccination rates between the rural and urban areas have become apparent during this pandemic. There is a need to understand the root causes of vaccine hesitancy demonstrated by the rural population to increase coverage and to contain the disease spread throughout the United States. This study aimed to explore other factors influencing vaccine hesitancy among rural dwellers besides the geography-related barriers such as poor health care access and individuals having no or suboptimal insurance coverage.
Methodology/Approach
By reviewing existing data and literature about vaccination, health literacy, and behaviors, and prevailing ideologies, we discuss the potential causes of vaccine hesitancy in rural areas that could create barriers for successful public health efforts related to vaccine coverage and provide suggestions to ameliorate the situation.
Findings
Geography-related barriers, health literacy, and preconceived notions are key determinants of adopting healthy behaviors and complying with public health authorities' recommendations among rural individuals during a public-health crisis. We argue that ideology, which is much deeper than preconception or misconception on vaccination, should be incorporated as a key factor to redefine the term “vulnerable populations” in public health research.
Research Limitations/Implications
The limitation of our study is that we have not found an effective way to encourage the populations who hold conservative religious and political ideologies to join the efforts for public health. Even though geography-related barriers may strongly impact the rural dwellers in achieving optimal health, the various forms of ideologies they have toward certain health behaviors cannot be discounted to understand and address vaccine-related disparities in rural areas. There is a need to redefine the term “vulnerable population” particularly as it relates to rural areas in the United States. During large-scale public health disasters, scholars and public health authorities should consider the ideologies of individuals, in addition to other factors such as race/ethnicity, area of residence (rural vs. urban), and socioeconomic factors influencing the existing vulnerabilities and health disparities.