Does Trust Influence the Extent of Inter-Organizational Barter?

The 1999 World Business Environment Survey investigated, among many other things, the extent of inter-organizational barter in various countries. Reported values differed a lot, e.g. it was less than 1% in Hungary but more than 30% in neighboring Croatia. Since in many such contracts goods and/or services are not exchanged at the same time, using barter tends to lead to a higher solvency risk than using money. Therefore, it is possible to theoretize that there is relation between the level of trust and the extent of barter use; namely that a higher level of trust leads to a higher extent of inter-organizational barter. The paper analyzes this relation.