IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2014i1p56-65.html

Economy of distrust (the institute of trust and its role in the regional competitiveness)

Author

Listed:
  • Nadezhda Kalyuzhnova

Abstract

The study is dedicated to the role of social capital in ensuring the competitiveness of the social and economic systems. The indicator of interpersonal trust is used as the important indicator of social capital. Trust and distrust are considered in the article as separate categories, the distrust and its role in the economic component of life in the regions and countries are considered. The theoretical provisions revealing the mechanisms of distrust influence on the economy and the competitiveness of economies are given. The article statistically examines the link of indicators of trust and distrust on the level of countries and Russian regions and the competitiveness of countries and Russian regions. The assessment of parameters of interpersonal trust / distrust at the level of regions of the Russian Federation and the country in general on the basis of the Public Opinion Foundation are provided. The calculations of the correlation between the scores of countries’ competitiveness and credibility of the countries on the basis of survey data from the European Social Survey (ESS), as well as the data of the World Economic Forum on the competitiveness of countries in 2008 and 2010 are also provided. Our empirical study confirmed the link between the low level of interpersonal trust and competitiveness of the Russian economy in general, and the state of the country’s institutions. At the same time, we fail to confirm the link between the indicators of interpersonal trust across regions and economic indicators. This may serve as a confirmation of the fact that regional communities have virtually no effect on the behavior and economic decisions of persons taking decisions in the regions. This can be explained by the lack of relationship between trust to the elites making decisions and their position due to the lack of selectivity of the first persons of regions and mechanisms of the real impact of the population on economic decision-making, as well the lack of mechanisms leading from the trust to the position of the elites. The results of the study can be used for development of policy for appointment / elections of governors, interaction between political elites and the society, in the theoretical studies.

Suggested Citation

  • Nadezhda Kalyuzhnova, 2014. "Economy of distrust (the institute of trust and its role in the regional competitiveness)," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 56-65.
    • Handle: RePEc:ura:ecregj:v:1:y:2014:i:1:p:56-65
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2014/March_2014/ERMarch2014_56_65.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    2. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    3. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    4. repec:spo:wpecon:info:hdl:2441/8883 is not listed on IDEAS
    5. repec:spo:wpmain:info:hdl:2441/8883 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Irina Tkachenko, 2018. "On the Way to «Conscious» Capitalism: From Marx to Modernity," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 725-739.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pevzner, Mikhail & Xie, Fei & Xin, Xiangang, 2015. "When firms talk, do investors listen? The role of trust in stock market reactions to corporate earnings announcements," Journal of Financial Economics, Elsevier, vol. 117(1), pages 190-223.
    2. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.
    3. Christian Bjørnskov & Pierre-Guillaume Méon, 2012. "Trust as the missing root of institutions, education, and development," Working Papers CEB 12-031, ULB -- Universite Libre de Bruxelles.
    4. Peng Huang & Yue Lu & Robert Faff, 2021. "Social trust and the speed of corporate leverage adjustment: evidence from around the globe," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3261-3303, June.
    5. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.
    6. Anguera-Torrell, Oriol, 2020. "Entrepreneurship, trust and corruption," European Journal of Political Economy, Elsevier, vol. 65(C).
    7. Maxim Ananiev & Sergei Guriev, 2014. "The Effect of Income on Trust: the Evidence from 2009 Crisis in Russia," Working Papers hal-03429914, HAL.
    8. Xin, Guangyi, 2017. "Trust and Economic Performance: A Panel Study," MPRA Paper 80815, University Library of Munich, Germany.
    9. Li, Xiaorong & Wang, Steven Shuye & Wang, Xue, 2019. "Trust and IPO underpricing," Journal of Corporate Finance, Elsevier, vol. 56(C), pages 224-248.
    10. Sangnier, Marc, 2013. "Does trust favor macroeconomic stability?," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 653-668.
    11. Blaine G Robbins, 2012. "A Blessing and a Curse? Political Institutions in the Growth and Decay of Generalized Trust: A Cross-National Panel Analysis, 1980–2009," PLOS ONE, Public Library of Science, vol. 7(4), pages 1-14, April.
    12. van Ypersele, Tanguy & Francois, Patrick, 2009. "Doux Commerces: Does Market Competition Cause Trust?," CEPR Discussion Papers 7368, Centre for Economic Policy Research.
    13. Ludek Kouba & Hans Pitlik, 2014. "I wanna live my life: Locus of Control and Support for the Welfare State," MENDELU Working Papers in Business and Economics 2014-46, Mendel University in Brno, Faculty of Business and Economics.
    14. Claudia Williamson & Rachel Mathers, 2011. "Economic freedom, culture, and growth," Public Choice, Springer, vol. 148(3), pages 313-335, September.
    15. Maxim Ananiev & Sergei Guriev, 2014. "The Effect of Income on Trust: the Evidence from 2009 Crisis in Russia," Sciences Po Economics Publications (main) hal-03429914, HAL.
    16. Limbach, Peter & Rau, P. Raghavendra & Schürmann, Henrik, 2020. "The Death of Trust Across the U.S. Finance Industry," CFR Working Papers 20-05, University of Cologne, Centre for Financial Research (CFR), revised 2020.
    17. repec:spo:wpmain:info:hdl:2441/8lt2edmul9geov3cf3fqf7h92 is not listed on IDEAS
    18. Lesmeister, Simon & Limbach, Peter & Goergen, Marc, 2022. "Trust and monitoring," Journal of Banking & Finance, Elsevier, vol. 143(C).
    19. Ali Recayi Ogcem & Ruth Tacneng & Amine Tarazi, 2021. "Trust and Financial Development: Forms of Trust and Ethnic Fractionalization Matter," Working Papers hal-03322592, HAL.
    20. Shen, Zhe & Sowahfio Sowah, Joseph & Li, Shan, 2022. "Societal trust and corporate risk-taking: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).
    21. Álvarez-Botas, Celia & González, Víctor M., 2021. "Does trust matter for the cost of bank loans?," Journal of Corporate Finance, Elsevier, vol. 66(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2014:i:1:p:56-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.