|Title:||Social trust and institutional (bank) trust: Empirical evidence of interaction|
Vol. 12, No 4, 2019
Published date: 12-2019 (print) / 12-2019 (online)
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Sumy State University, Ukraine
Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Prague, Czech Republic
University of Social Sciences, Lodz, Poland
Sumy State University, Ukraine
|Keywords:||interpersonal trust, institutional trust, banks, structural equation modeling|
|JEL classification:||A14, G21|
|This work would not have been possible without the financial support of the Ministry of Education and Science of Ukraine. The paper was prepared as part of the Young Scientist Research on the topic "Economic-mathematical modeling of the mechanism for restoring public trust in the financial sector: a guarantee for economic security of Ukraine" (registration number 0117U003924).|
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.
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