Proximity and the trust formation process

Abstract

Trust is a key mechanism for explaining the ease and frequency of knowledge spillovers within regions. While the importance of trust is virtually uncontested, there have been few attempts to rigorously disentangle the way in which trust formation is related to space and proximity. The aim of this paper is to advance the understanding of trust formation in terms of its main antecedents within the context of regional studies. This is done by reviewing the rich literature on trust formation from psychology, sociology, and organization studies and connecting it conceptually to different types of proximity. In doing so, the paper maps out a number of avenues for future research on trust and geography.