Societies are growing more ethnically, culturally, and racially diverse. Increasing migrant populations have a variety of economic implications over the globe, particularly in Northern Africa, Western Asia (International Migration Report 2019) and Sub-Saharan Africa The year is 2019. This growing variability may make it difficult for businesses to compete effective resource management in a common pool (CPRs) in two ways: (1) directly by diversifying interests; and (2) indirectly by diversifying interests.(1) directly by diminishing trust among users, and (2) indirectly by diminishing trust among users end-users Cooperation in CPRs is reduced in both cases. Natural or man-made resources, such as grasslands, are examples of CPRs. For example, shared woodlands, fishing ponds, or irrigation systems. Excluding potential users is costly (Ostrom 1990).
A common-pool resource, unlike a public good, may run out, exposing it to the ‘tragedy of the commons,’ as outlined by Hardin (1968), a situation in which the dominant short-term strategy of users is to exploit the restricted resource.
It decays if it is used indefinitely. The impact of increasing heterogeneity on CPR success, as well as the function of trust in this process (Baland and Platteau 1999; Bardhan and Dayton-Johnson 2002; Ruttan 2006, 2008; Varughese and Ostrom 2001), is still debated. Economic heterogeneity refers to differences in wealth, income, and resource access, while socio-cultural heterogeneity refers to differences in language, ethnicity, religion, and other cultural expressions (Baland and Platteau 1996; Bardhan 2000).
Ruttan 2006; and Dayton-Johnson 2002). Most research claims that economic and sociocultural heterogeneity can contribute to higher negotiation and bargaining costs due to a lack of common concepts, beliefs, and incentives among people or groups of individuals (Aksoy 2019; Bardhan and DaytonJohnson 2002), unequal sharing of decision-making rights, and varied reasons to cooperate (Aksoy 2019; Bardhan and DaytonJohnson 2002). (Anderson and Paskeviciute 2006; Fung and Au 2014; Komakech et al. 2012), as well as the possibility that it will reduce social cohesion (Flache and Mäs 2008; Jehn et al. 1999). However, other research argues that economic heterogeneity has a positive impact on the provision of community goods, claiming that (Anderson and Paskeviciute 2006; Fung and Au 2014; Komakech et al. 2012), as well as the possibility that it will reduce social cohesion (Flache and Mäs 2008; Jehn et al. 1999). Some research, on the other hand, suggests that economic heterogeneity has a positive effect on the provision of collective goods, stating that it can lead to an inequality of incentives, resulting in some appropriators being motivated enough to invest in collective action on their own, thus bearing the costs of cooperation.
We include trust as a mediator to investigate the indirect relationship between heterogeneity and CPR success: there is evidence that heterogeneity influences trust (Alesina and La Ferrara 2002; Delhey and Newton 2005; Fukuyama 1995; Putnam 2000; Uslaner 2002; Zak and Knack 2001) and that it has a significant impact on social outcomes (Fukuyama 1995; Putnam 2000; Uslaner 2002; Zak and Knack 2001). The relationship between trust and CPR success, as well as the function of trust in the indirect relationship between heterogeneity and CPR success, will be investigated.
There is no evidence of a negative relationship between heterogeneity and CPR success, according to the findings. Economic heterogeneity, on the other hand, is found to be negatively connected to trust, whereas trust is found to be positively connected to CPR success. There is evidence for an indirect influence of economic heterogeneity on CPR success through trust.