Internal displacement and external migration in a post-conflict economy: Perceptions of institutions among migrant entrepreneurs

This article examines the trust of institutions among internal and external migrant entrepreneurs in the post-conflict economy of Bosnia and Herzegovina. Drawing on survey data and in-depth interviews, we find that external migrant entrepreneurs with international experience have lower trust in institutions than internal migrants. This is explained by the comparison of institutions in the country of origin with more stable institutional environments they experienced while being abroad. Consistent with this conclusion, a more complex institutional setup within the country is associated with lower trust in institutions. We also show that personal network diversity has a differential impact on trust, with individuals in more ethnically diverse areas and networks reporting lower trust, reflecting the possibility that institutions are not ethnically neutral and inclusive enough.