Corruption Aversion, Social Capital, and Institutional Trust in a Dysfunctional Institutional Framework: Evidence from a Palestinian Survey

Studying the inter-play between social capital and corruption aversion in a context subject to institutional dysfunctions like the Palestinian Territories may help understand mechanisms of governance and institutional legitimacy. By using a unique survey conducted in 2007 in the Palestinian Territories, we find that corruption aversion increases with civic spirits and is lower among individuals involved in voluntary activities. Furthermore, corruption aversion and social capital increase with institutional trust and the importance of the rule of law. These results are integrated within the current debate on the role that identity-based motivations of moral solidarity play in supporting institutional legitimacy.