Modelling trust and contractual arrangements in a local economy

Dalel Ayari, Lokman Zaibet*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


This article investigates trust among dairy value-chain actors to understand the innovative process in a local productive sector in Tunisia. It uses a sample of 45 smallholder farmers chosen randomly nearby existing collection centres in the region. A trust variable is constructed employing 11 ordinal variables based on principal component analysis, and institutional arrangements then modelled to examine the effect of trust on contracting decisions and cooperative membership. The results show that trust is defined by values such as “integrity”, “competence”, and “existence of credible information”, which are preconditions to sustainable contracts. The article contributes to the growing literature which considers social capital, networking and trust as determinants of farmer’s behaviour, as opposed to the classical model of rationality.

Original languageEnglish
Pages (from-to)525-533
Number of pages9
JournalDevelopment in Practice
Issue number4
Publication statusPublished - May 19 2019


  • Arab States
  • Environment (built and natural)–Agriculture
  • Governance and public policy

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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