African Journal of Agricultural Economics and Rural Development ISSN 2375-0693 Vol. 10 (6), pp. 001-013, June, 2022. © International Scholars Journals

Full Length Research Paper

Does Intrinsic Honesty Accumulate with Employment Through Foreign Direct Investments: The Case of Mozambique

Erin Farmer¹, Amy Farmer², Lanier Nalley³, Rodolfo M. Nayga, Jr.⁴

¹Department of Plant Breeding, Cornell University, Ithaca, New York, and Department of Economics, University of Arkansas, Fayetteville, Arkansas USA.

²Department of Economics, University of Arkansas, Fayetteville, Arkansas, USA.

³Department of Agricultural Economics and Agribusiness, University of Arkansas. Fayetteville, Arkansas, USA.

⁴Department of Agricultural Economics, Texas A&M University, College Station, Texas, USA. 

Accepted 18 December, 2021

Abstract

Given the influx of FDI in Mozambique, it is important to investigate how honesty and trust play a role in these economic interactions between the local community and foreign investors. To explore these issues, a case study was conducted at Novos Horizontes, the largest, fully integrated poultry farm in Northern Mozambique. Using a well established trust experiment, we find that participants associated with the FDI trust both strangers and members of NGOs more than those without such an association.  This effect is increased when the interviewer is a foreigner, providing evidence that trust of forigners can be built through collaberations and institutions in an FDI context.

Keywords: Trust, Mozambique, Foreign Direct Investment, Honesty.