Analyzing the Relationship between Macroeconomic Factors and Interpersonal Trust: A Multivariate Examination of Global Data
DOI:
https://doi.org/10.61506/01.00357Keywords:
Interpersonal Trust, Socioeconomic variables, economic developmentAbstract
This research article delves into the intricate connection between socioeconomic variables and interpersonal trust, employing a robust logit analysis using WVS (wave 7) for 55 countries. Built upon established theories in the fields of sociology and economics, this study aims to explore the influence of a range of independent variables on interpersonal trust, including GDP per capita, the Human Development Index (HDI), the gender development index (DGI), population size, internet users, satisfaction, and income problems. Our findings support the resource-based theory of trust by demonstrating that GDP per capita and HDI have a significantly positive impact on interpersonal trust. The analysis indicates that a larger population size is associated with a decrease in trust, which aligns with theories that emphasize the challenges posed by increased population complexity. Moreover, the research identifies that internet users and satisfaction exert a moderate positive effect on trust, highlighting the role of information access and well-being in trust formation. Furthermore, income problems are shown to have a significant negative effect on interpersonal trust, aligning with the socio-economic stress theory. The results of this study offer valuable insights for policymakers and economists aiming to foster interpersonal trust in various social contexts. A comprehensive understanding of the multifaceted influence of these variables on trust can inform the development of more effective strategies.
References
Ahmad, M., & Hall, S. G. (2017). Trust-based social capital, economic growth and property rights: explaining the relationship. International Journal of Social Economics. DOI: https://doi.org/10.1108/IJSE-11-2014-0223
Aslam, A. (2020). The hotly debate of human capital and economic growth: why institutions may matter? Quality & Quantity, 54(4), 1351-1362. DOI: https://doi.org/10.1007/s11135-020-00989-5
Aslam, A., & Farooq, A. (2019). In Pursuit of Inclusive Institutional Growth: A Comparative Pattern of Selected Asian Countries. European Online Journal of Natural and Social Sciences, 8(3), pp. 495-511.
Aslam, A., & Shabbir, G. (2019). Socio-Digital Inclusion for Inclusive Growth: Evidences from World Level Data. Pakistan Journal of Social Sciences (PJSS), 39(2).
Aslam, A., & Zulfiqar, K. (2016). Policy framework for inclusive growth: a case study of selected Asian countries. Forman J. Econ. Stud, 12, 21-40. DOI: https://doi.org/10.32368/FJES.20161202
Aslam, A., Ghouse, G., (2022). The Socio-Economic Determinants of Interpersonal Trust Levels. International Journal of Management Research and Emerging Sciences , 12( 3),155-165. DOI: https://doi.org/10.56536/ijmres.v12i3.268
Aslam, A., Naveed, A., & Shabbir, G. (2021). Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis. Quality & Quantity, 55(1), 333-355. DOI: https://doi.org/10.1007/s11135-020-01008-3
Aslam. A., & Ghouse, G., (2023). Comparative Analysis of Trust in Financial Institutions Across four Provinces in Pakistan. Audit and Accounting Review (AAR), 3(2). DOI: https://doi.org/10.32350/aar.32.02
Atkinson, A. B. (1999). The economic consequences of rolling back the welfare state. MIT press
Aydemir, R. (2024). Examining the Cluster Life Cycle in the Process of Economic Development. Journal of Policy Options, 7(1), 18-26.
Banfield, E. C. (1967). The moral basis of a backward society.
Blind, P. K. (2007, June 26–29). Building trust in government in the twenty-first century: Review of literature and emerging issues. 7th global forum on reinventing government building trust in government, Expert Associate UNDESA Vienna, Austria.
Borum, R. (2010). The science of interpersonal trust. University of South Florida.
Castaldo, S., Perrini, F., Misani, N., & Tencati, A. (2009). The missing link between corporate social responsibility and consumer trust: The case of fair trade products. Journal of business ethics, 84(1), 1-15. DOI: https://doi.org/10.1007/s10551-008-9669-4
Chen, G., Yang, Z., & Chen, S. (2020). Measurement and convergence analysis of inclusive green growth in the Yangtze river economic belt cities. Sustainability, 12(6), 2356. DOI: https://doi.org/10.3390/su12062356
Chita-Tegmark, M., Law, T., Rabb, N., & Scheutz, M. (2021). Can you trust your trust measure? Proceedings of ACM/IEEE International Conference on Human-Robot Interaction. DOI: https://doi.org/10.1145/3434073.3444677
Choi, N. (2005). Self‐efficacy and self‐concept as predictors of college students' academic performance. Psychology in the Schools, 42(2), 197-205. DOI: https://doi.org/10.1002/pits.20048
Chusseau, N., Dumont, M., & Hellier, J. (2008). Explaining rising inequality: Skill‐biased technical change and north–south trade. Journal of Economic Surveys, 22(3), 409-457. DOI: https://doi.org/10.1111/j.1467-6419.2007.00537.x
Coleman, J. S. (1988). Social capital in the creation of human capital. American journal of sociology, 94, S95-S120. DOI: https://doi.org/10.1086/228943
Collie, R. J., Shapka, J. D., Perry, N. E., & Martin, A. J. (2015). Teachers' beliefs about social-emotional learning: Identifying teacher profiles and their relations with job stress and satisfaction. Learning and Instruction, 39, 148-157. DOI: https://doi.org/10.1016/j.learninstruc.2015.06.002
Craig, R. K. (2007). A comparative guide to the eastern public trust doctrines: classifications of states, property rights, and state summaries. Penn St. Envtl. L. Rev., 16, 1.
Dalcher, D. (2018). It starts with trust: People, perspectives and relationships as the building blocks for sustainable success. In Managing Projects in a World of People, Strategy and Change (pp. 13-19). Routledge. DOI: https://doi.org/10.4324/9780429449741-2
Dasgupta, P., & Gambetta, D. (1988). Trust: Making and breaking cooperative relations. Department of Sociology, University of Oxford: Basil Blackwell, 49-72.
Dyer, J. H., & Chu, W. (2003). The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan, and Korea. Organization science, 14(1), 57-68. DOI: https://doi.org/10.1287/orsc.14.1.57.12806
Elahi, G., & Yu, E. (2009). Trust trade-off analysis for security requirements engineering. 17th IEEE International Requirements Engineering Conference, DOI: https://doi.org/10.1109/RE.2009.12
Epstein, S. (1980). The self-concept. Personality: Basic issues and current research. NJ: Prentice-HalL.
Fahr, R., & Irlenbusch, B. (2000). Fairness as a constraint on trust in reciprocity: earned property rights in a reciprocal exchange experiment. Economics Letters, 66(3), 275-282. DOI: https://doi.org/10.1016/S0165-1765(99)00236-0
Fang, G., & Zhu, Y. (2022). The Social Scar of the Pandemic: Impacts of COVID-19 Exposure on Interpersonal Trust. Available at SSRN 4067592. DOI: https://doi.org/10.2139/ssrn.4067592
Farhadi, M., & Zhao, L. (2024). Exploring the Impact of Iran-China Trade on Environmental Sustainability. Journal of Energy and Environmental Policy Options, 7(1), 1-8.
Filipiak, U. (2016). Trusting financial institutions: Out of reach, out of trust? The Quarterly Review of Economics and Finance, 59(C). 200– 214. DOI: https://doi.org/10.1016/j.qref.2015.06.006
Fukuyama, F. (1995). Social capital and the global economy. Foreign Aff., 74, 89. DOI: https://doi.org/10.2307/20047302
Gecas, V. (1982). The self-concept. Annual review of sociology, 1-33. DOI: https://doi.org/10.1146/annurev.so.08.080182.000245
Goldsmith, R. E., Moore, M. A., & Beaudoin, P. (1999). Fashion innovativeness and self‐concept: a replication. Journal of Product & Brand Management, 8(1), 7-18. DOI: https://doi.org/10.1108/10610429910257904
Greif, A. (1993). Contract enforceability and economic institutions in early trade: The Maghribi traders' coalition. The American economic review, 525-548.
Grootaert, C. (2001). Does social capital help the poor?-a synthesis of findings from the local level institutions studies in Bolivia, Burkina Faso, and Indonesia. The World Bank.
Hassan, J., Muhammad, N., Sarwar, B., & Zaman, N. U. (2020). Sustainable development through financial inclusion: The use of financial services and barriers in Quetta-Pakistan. European Online Journal of Natural and Social Sciences, 9(4), 691–707
Helliwell, J. F. (1996). Economic growth and social capital in Asia. In: National Bureau of Economic Research Cambridge, Mass., USA. DOI: https://doi.org/10.3386/w5470
Hergeth, S., Lorenz, L., Vilimek, R., & Krems, J. F. (2016). Keep your scanners peeled: Gaze behavior as a measure of automation trust during highly automated driving. Human factors, 58(3), 509-519. DOI: https://doi.org/10.1177/0018720815625744
Heyert, A., & Weill, L. (2023). The gender gap in trust in banks. Research in International Business and Finance, 66, Article e102032. DOI: https://doi.org/10.1016/j.ribaf.2023.102032
Hofstede, G. J., Jonker, C. M., Meijer, S., & Verwaart, T. (2006). Modelling trade and trust across cultures. International Conference on Trust Management, DOI: https://doi.org/10.1007/11755593_10
Ibrahim, M., & Rasheed, A. (2024). Exploring the Link Between Customer Relationship Management and Hotel Performance. Journal of Policy Options, 7(1), 1-10.
Inglehart, R. (1997). Modernization and postmodernization in 43 societies. Princeton university press. DOI: https://doi.org/10.1515/9780691214429
Iqbal, M., & Abbas, W. (2024). Determinants of Expected Service Quality: A Comparative Study in Pakistani Banking Sector. Journal of Policy Options, 7(1), 27-35.
Jalan, A., Matkovskyy, R., Urquhart, A., & Yarovaya, L. (2022). The role of interpersonal trust in cryptocurrency adoption. Available at SSRN: https://ssrn.com/abstract=4099518 or http://dx.doi.org/10.2139/ssrn.4099518 DOI: https://doi.org/10.2139/ssrn.4099518
Ji, B., & Long, R. (2022). International Research Progress and Evolution Trend of Interpersonal Trust—Prospects under COVID-19 Pandemic. Sustainability, 14(2), 987. DOI: https://doi.org/10.3390/su14020987
Judge, T. A., Erez, A., & Bono, J. E. (1998). The power of being positive: The relation between positive self-concept and job performance. Human performance, 11(2-3), 167-187 DOI: https://doi.org/10.1080/08959285.1998.9668030
Kelly, M. (2005). The Seven Levels of Intimacy: The Art of Loving and the Joy of Being Loved. Simon and Schuster.
Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. The Quarterly journal of economics, 112(4), 1251-1288.
Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. The Quarterly journal of economics, 112(4), 1251-1288. DOI: https://doi.org/10.1162/003355300555475
Komarraju, M., Musulkin, S., & Bhattacharya, G. (2010). Role of student–faculty interactions in developing college students' academic self-concept, motivation, and achievement. Journal of college student development, 51(3), 332-342. DOI: https://doi.org/10.1353/csd.0.0137
Kowalski, M., Lee, Z. W., & Chan, T. K. (2021). Blockchain technology and trust relationships in trade finance. Technological forecasting and social change, 166, 120641. DOI: https://doi.org/10.1016/j.techfore.2021.120641
Krugman, P. (2015). Trade and trust. The New York Times, A27 (L)-A27 (L).
Lau, D. C., Lam, L. W., & Wen, S. S. (2014). Examining the effects of feeling trusted by supervisors in the workplace: A self‐evaluative perspective. Journal of Organizational Behavior, 35(1), 112-127. DOI: https://doi.org/10.1002/job.1861
Li, S., & Wu, J. (2010). Why some countries thrive despite corruption: The role of trust in the corruption–efficiency relationship. Review of International Political Economy, 17(1), 129-154. DOI: https://doi.org/10.1080/09692290802577446
Luhmann, N. (1986). Love as passion: The codification of intimacy. Harvard University Press.
Lyeonov, S., Vasilyeva, T., Bilan, Y., & Bagmet, K. (2021). Convergence of the institutional quality of the social sector: The path to inclusive growth. International Journal of Trade and Global Markets, 14(3), 272-291. DOI: https://doi.org/10.1504/IJTGM.2021.115712
Lynch, K. (2013). Why Love, Care, and Solidarity Are Political Matters: Aff ective Equality and Fraser’s Model of Social Justice. In Love (pp. 187-204). Routledge. DOI: https://doi.org/10.4324/9781315884783-20
Mainous, A. G., Smith, D. W., Geesey, M. E., & Tilley, B. C. (2006). Development of a measure to assess patient trust in medical researchers. The Annals of Family Medicine, 4(3), 247-252. DOI: https://doi.org/10.1370/afm.541
Marsh, H. W., Parada, R. H., & Ayotte, V. (2004). A multidimensional perspective of relations between self-concept (Self-Description Questionnaire II) and adolescent mental health (Youth Self-Report). Psychological Assessment, 16(1), 27. DOI: https://doi.org/10.1037/1040-3590.16.1.27
Mazar, N., Amir, O., & Ariely, D. (2008). The dishonesty of honest people: A theory of self-concept maintenance. Journal of marketing research, 45(6), 633-644. DOI: https://doi.org/10.1509/jmkr.45.6.633
McAllister, D. J. (1995). Affect-and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of management journal, 38(1), 24-59. DOI: https://doi.org/10.5465/256727
Morris, S. D., & Klesner, J. L. (2010). Corruption and trust: Theoretical considerations and evidence from Mexico. Comparative political studies, 43(10), 1258-1285. DOI: https://doi.org/10.1177/0010414010369072
Osherenko, G. (2006). New discourses on ocean governance: understanding property rights and the public trust. J. Envtl. L. & Litig., 21, 317.
Peloso, M. E., & Caldwell, M. R. (2011). Dynamic property rights: the public trust doctrine and takings in a changing climate. Stan. Envtl. LJ, 30, 51.
Platt, J. E., Jacobson, P. D., & Kardia, S. L. (2018). Public trust in health information sharing: a measure of system trust. Health services research, 53(2), 824-845. DOI: https://doi.org/10.1111/1475-6773.12654
Putnam, R. D. (1995). Tuning in, tuning out: The strange disappearance of social capital in America. PS: Political science & politics, 28(4), 664-683. DOI: https://doi.org/10.2307/420517
Putnam, R. D. (2000). Bowling alone: The collapse and revival of American community. Simon and schuster. DOI: https://doi.org/10.1145/358916.361990
Qamar, A., Ashraf, M. S., Ghouse, G., & Aslam, A. (2020). Probing Real Economic Growth through Institutional Quality and Fiscal Policy in Pakistan. Ilkogretim Online, 19(3), 2378-2385.
Quader, M. (2024). Exploring Human Resource Management Practices and Employee Satisfaction in Bangladesh’s Private Banking Sector. Journal of Policy Options, 7(1), 36-45.
Rath, N. (2024). Perceived Advantages and Challenges of Internet Marketing: A Study of Small Entrepreneurs in Punjab, India. Journal of Policy Options, 7(1), 11-17.
Rempel, J. K., Holmes, J. G., & Zanna, M. P. (1985). Trust in close relationships. Journal of personality and social psychology, 49(1), 95. DOI: https://doi.org/10.1037//0022-3514.49.1.95
Rose-Ackerman, S. (2001). Trust, honesty and corruption: Reflection on the state-building process. European Journal of Sociology/Archives Européennes de Sociologie, 42(3), 526-570. DOI: https://doi.org/10.1017/S0003975601001084
Roth, F. (2006). Trust and economic growth: Conflicting results between cross-sectional and panel analysis. Ratio Working Papers, 102.
Rothstein, B. (2001). Social capital in the social democratic welfare state. Politics & Society, 29(2). DOI: https://doi.org/10.1177/0032329201029002003
Rothstein, B., & Eek, D. (2009). Political corruption and social trust: An experimental approach. Rationality and society, 21(1), 81-112. DOI: https://doi.org/10.1177/1043463108099349
Serritzlew, S., Sønderskov, K. M., & Svendsen, G. T. (2014). Do corruption and social trust affect economic growth? A review. Journal of Comparative Policy Analysis: Research and Practice, 16(2), 121-139 DOI: https://doi.org/10.1080/13876988.2012.741442
Sias, P. M. (2008). Organizing relationships: Traditional and emerging perspectives on workplace relationships. DOI: https://doi.org/10.4135/9781452204031
Simpson, J. A. (2007). Foundations of interpersonal trust.
Skovlund, H. (2014). Inclusive and exclusive aspects of diagnosed children's self-concepts in special needs institutions. International Journal of Inclusive Education, 18(4), 392-410. DOI: https://doi.org/10.1080/13603116.2013.778336
Sohlberg, J., Agerberg, M., & Esaiasson, P. (2022). Waiting for Asylum: Reduced Institutional and Interpersonal Trust. Political Studies, 00323217221103728. DOI: https://doi.org/10.1177/00323217221103728
Sullivan, J. L., & Transue, J. E. (1999). The psychological underpinnings of democracy: A selective review of research on political tolerance, interpersonal trust, and social capital. Annual review of psychology, 50(1), 625-650. . DOI: https://doi.org/10.1146/annurev.psych.50.1.625
Teraji, S. (2008). Property rights, trust, and economic performance. The Journal of Socio-Economics, 37(4), 1584-1596. DOI: https://doi.org/10.1016/j.socec.2007.06.008
Tschannen-Moran, M. (2007). Becoming a trustworthy leader. The Jossey Bass reader on educational leadership, 99-113.
Ullah, A., & Ali, A. (2024). Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis. Journal of Energy and Environmental Policy Options, 7(1), 9-18.
Ullman, D., & Malle, B. F. (2018). What does it mean to trust a robot? Step toward amultidimensional measure of trust. Companion of the 2018 acm/ieee international conference on human-robot interaction DOI: https://doi.org/10.1145/3173386.3176991
Uslaner, E. M. (2004). Trust and corruption. In The new institutional economics of corruption (pp. 90-106). Routledge.
Uslaner, E. M. (2013). Trust and corruption revisited: How and why trust and corruption shape each other. Quality & Quantity, 47(6), 3603-3608. DOI: https://doi.org/10.1007/s11135-012-9742-z
Usman, H., Tjiptoherijanto, P., Balqiah, T. E., & Agung, I. G. N. (2017). The role of religious norms, trust, importance of attributes and information sources in the relationship between religiosity and selection of the Islamic bank. Journal of Islamic Marketing, 8(2), 158–186. DOI: https://doi.org/10.1108/JIMA-01-2015-0004
Zeffane, R., & Connell, J. (2003). Trust and HRM in the new millennium. International Journal of Human Resource Management, 14(1), 3-11. DOI: https://doi.org/10.1080/09585190210158484
