The ability of trust to influence GDP per capita
The article explores social capital and its impact on economic development. This paper aims to analyze the role of trust in the process of growth and economic development. The interdependence of GDP per capita and trust level as an element of social capital has been analyzed. The correlation between...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2020-03-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13296/PPM_2020_01_Zakharov.pdf |
| _version_ | 1818240348614295552 |
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| author | Dmytro Zakharov Svitlana Bezruchuk Viktoriia Poplavska Svitlana Laichuk Hanna Khomenko |
| author_facet | Dmytro Zakharov Svitlana Bezruchuk Viktoriia Poplavska Svitlana Laichuk Hanna Khomenko |
| author_sort | Dmytro Zakharov |
| collection | DOAJ |
| description | The article explores social capital and its impact on economic development. This paper aims to analyze the role of trust in the process of growth and economic development. The interdependence of GDP per capita and trust level as an element of social capital has been analyzed. The correlation between trust and GDP per capita in 43 countries has been reflected. World Values Survey (WVS) was used to obtain empirical trust data. To determine the relationship between confidence level and GDP per capita, the correlation model was built. The regression coefficient b = 0.834 shows the average change in the effective indicator. Thus, with an increase of 1 unit of trust, GDP per capita rises by an average of 0.834. The coefficient of determination indicates that 60.68% of cases of changes in trust lead to a change in GDP per capita. The result suggests that trust serves as a tool in assisting the economic growth and company’s value. The study examines the tools that help to build trust, as economic development as a whole depends on it. |
| first_indexed | 2024-12-12T13:12:01Z |
| format | Article |
| id | doaj.art-5098bb62e10340fda4449025c242ad93 |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-12-12T13:12:01Z |
| publishDate | 2020-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-5098bb62e10340fda4449025c242ad932022-12-22T00:23:30ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672020-03-0118130231410.21511/ppm.18(1).2020.2613296The ability of trust to influence GDP per capitaDmytro Zakharov0https://orcid.org/0000-0003-3423-0093Svitlana Bezruchuk1https://orcid.org/0000-0001-7374-7875Viktoriia Poplavska2https://orcid.org/0000-0002-0531-9796Svitlana Laichuk3https://orcid.org/0000-0001-7939-1195Hanna Khomenko4https://orcid.org/0000-0002-6337-3635Postgraduate Student, Faculty of Business and Services, Department of Accounting and Auditing, Zhytomyr Polytechnic State UniversityCandidate of Economics, Associate Professor, Faculty of Business and Services, Department of Accounting and Auditing, Zhytomyr Polytechnic State UniversityPostgraduate Student, Faculty of Business and Services, Department of Accounting and Auditing, Zhytomyr Polytechnic State UniversityCandidate of Economics, Associate Professor, Faculty of Business and Services, Department of Accounting and Auditing, Zhytomyr Polytechnic State UniversityCandidate of Economics, Faculty of Business and Services, Department of Accounting and Auditing, Zhytomyr Polytechnic State UniversityThe article explores social capital and its impact on economic development. This paper aims to analyze the role of trust in the process of growth and economic development. The interdependence of GDP per capita and trust level as an element of social capital has been analyzed. The correlation between trust and GDP per capita in 43 countries has been reflected. World Values Survey (WVS) was used to obtain empirical trust data. To determine the relationship between confidence level and GDP per capita, the correlation model was built. The regression coefficient b = 0.834 shows the average change in the effective indicator. Thus, with an increase of 1 unit of trust, GDP per capita rises by an average of 0.834. The coefficient of determination indicates that 60.68% of cases of changes in trust lead to a change in GDP per capita. The result suggests that trust serves as a tool in assisting the economic growth and company’s value. The study examines the tools that help to build trust, as economic development as a whole depends on it.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13296/PPM_2020_01_Zakharov.pdfbusiness social responsibilitysocial capitalsocial networkssocial normstrust |
| spellingShingle | Dmytro Zakharov Svitlana Bezruchuk Viktoriia Poplavska Svitlana Laichuk Hanna Khomenko The ability of trust to influence GDP per capita Problems and Perspectives in Management business social responsibility social capital social networks social norms trust |
| title | The ability of trust to influence GDP per capita |
| title_full | The ability of trust to influence GDP per capita |
| title_fullStr | The ability of trust to influence GDP per capita |
| title_full_unstemmed | The ability of trust to influence GDP per capita |
| title_short | The ability of trust to influence GDP per capita |
| title_sort | ability of trust to influence gdp per capita |
| topic | business social responsibility social capital social networks social norms trust |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/13296/PPM_2020_01_Zakharov.pdf |
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