Received: 2016-12-05  |  Accepted: 2017-03-27

Title

Trust and a sustainability of the macroeconomic growth insights from dynamic perspective


Abstract

In last two decades, several authors have already proven the existence of positive relationship between generalized trust and macroeconomic growth and this paper queues up providing the evidence based on more recent data. An analysis of sustainability of the macroeconomic growth is also very important for prediction of economic development. However, the main aim of the paper is to analyse how the impact of trust on macroeconomic growth changes upon time, trying to find the answer how fast can changes in trust and other determinants be visible in changes in economic growth of countries. For this purpose, we introduced the dynamic aspect into the “Barro-type” regression growth models used by our predecessors. We can conclude, that trust is the most dynamic growth determinant, with the impact visible after 5 years. The paper also confirmed that the higher the initial level of GDP per capita (in terms of constancy of other variables in the model), the greater the decline in the growth rate. The high level of trust also allows better implementation of effective organizational innovation and knowledge transfer within the organization, since trust is also active through the channel of building the common good.


Keywords

social capital, trust, economic growth, empirical study, linear regression model, panel data


JEL classifications

O11 , O47


URI

http://jssidoi.org/jssi/papers/papers/view/236


DOI

10.9770/jssi.2017.6.4(9)

Authors

Gavurova, Beata
Technical University of Košice
Articles by this author in: CrossRef |  Google Scholar

Virglerova, Zuzana
Tomas Bata University in Zlín
Articles by this author in: CrossRef |  Google Scholar

Janke, Frantisek
Technical University of Košice
Articles by this author in: CrossRef |  Google Scholar

Title

Journal of Security and Sustainability Issues


Issue date

2017


ISSN

ISSN 2029-7017 (print)
ISSN 2029-7025 (online)

Cited

Google Scholar

Paper views & downloads

HTML views: 301  |  PDF downloads: 249