The ability of trust to influence GDP per capita

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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.

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    • Figure 1. The correlations between trust and GDP per capita
    • Figure 2. The correlations between trust and GDP per capita in the European countries
    • Figure 3. The process of developing trust between contractors
    • Table 1. Effects of the composition of the sample on trust using EBA analysis
    • Table 2. Sub-sample estimation of trust
    • Table 3. Regression parameters