SOCIAL TRUST AND INSTITUTIONAL (BANK) TRUST: EMPIRICAL EVIDENCE OF INTERACTION
SOCIAL TRUST AND INSTITUTIONAL (BANK) TRUST: EMPIRICAL EVIDENCE OF INTERACTION
Author(s): Anna Buriak, Iveta Vozňáková, Joanna Sułkowska, Yana KryvychSubject(s): Business Economy / Management, Comparative politics, Economic development, Financial Markets, Marketing / Advertising
Published by: Fundacja Centrum Badań Socjologicznych
Keywords: interpersonal trust; institutional trust; banks; structural equation modeling;
Summary/Abstract: This paper analyzes the interaction between interpersonal trust (as informal rules and behavior) and trust in banks (as formal rules and institutions) as well as institutional sources of trust. Structural equation modeling and cluster analysis were applied to data from the World Values Survey extracted from the Wave 6 (2010-2014). The results of cross-sectional estimations show complementary view on interaction – a positive link between interpersonal trust and trust in banks. Using cluster method, strong impact of institutional environment (GDP per capita, Education Index, Inequality Index, Rule of Law Index) on the level of interaction has been found. The lowest level of linkages between interpersonal trust and trust in banks is associated with the worst institutional environment, the highest level of impact – with the best institutional environment.
Journal: Economics and Sociology
- Issue Year: 12/2019
- Issue No: 4
- Page Range: 116-129
- Page Count: 14
- Language: English
