Analyzing the Relationship between Macroeconomic Factors and Interpersonal Trust: A Multivariate Examination of Global Data

Minza Mudassar, Prof. Dr. Asif Shamim, Muzamir M. Mafabi and Nasir Aziz Kamboh
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Minza Mudassar: Department of Economics, The University of Lahore, Lahore, Pakistan
Prof. Dr. Asif Shamim: IQRA University Karachi, Pakistan
Muzamir M. Mafabi: Lahore Business School, The University of Lahore, Lahore, Pakistan
Nasir Aziz Kamboh: Department of Economics, The University of Lahore, Lahore, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 475-480

Abstract: 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.

Keywords: Interpersonal Trust; Socioeconomic variables; economic development (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:13:y:2024:i:2:p:475-480

DOI: 10.61506/01.00357

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