When Money Can’t Buy Trust: Gendered Distrust of International Investors

Do men and women trust international investors equally and how is this related to concerns about the environment and sustainability? Recent studies show women tend to be less trusting of international firms investing in local economies. While this finding is well-documented, the reasons for this distrust are often unclear. We propose a new explanation: women, who generally have stronger pro-environmental preferences and a greater concern for ecological sustainability, may be skeptical of international investors due to the potential for negative environmental impacts from large-scale foreign direct investment. We believe this effect is most pronounced in countries with weaker environmental regulations and a high risk of resource exploitation by foreign entities. These conditions amplify concerns among women about long-term environmental damage to their communities. Using the latest Life in Transition Surveys from 2022-2023, covering 37 countries, our findings confirm that women report lower trust in international investors compared to men. Our robustness checks show these results are not due to possible alternative explanations, like xenophobia or general risk aversion. Instead, they are significantly influenced by worries about environmental degradation and unsustainable practices. From a policy perspective, our findings highlight the need to acknowledge and address this gendered trust gap in international investment. Doing so is crucial for designing more inclusive capital flows that not only empower women and improve their livelihoods but also promote environmentally responsible investment practices. 

Bernhard Reinsberg is a Professor of International Political Economy and Development at the University of Glasgow and a Research Associate in Political Economy at the Centre for Business Research at the University of Cambridge. He holds a PhD in Political Science from the University of Zurich, an MA in Comparative and International Studies at ETH Zurich and BA degrees in Political Science (Freie Universität Berlin) and Mathematics (University in Hagen). 

His research is on the political economy of international organisations—such as the World Bank and the International Monetary Fund—and seeks to contribute to a better understanding of what drives their behavior and when their development interventions are effective. As awardee of a UKRI Future Leaders Fellowship, he examines the impact of earmarked funding to international organisations on their ability to contribute to the achievement of the Sustainable Development Goals.

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