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Economists care about trust because it is closely connected to economic activity. Its absence leads to lower wages, profits, and employment, while its presence facilitates trade and encourages activity that adds economic value. Before explaining further let's consider what trust mean. What is a Trust? A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. In finance, a trust can also be a type of closed-end fund built as a public limited company.
Trust is not significantly associated with economic growth. However, it shows a positive and significant effect on human development. Hence, instead of having direct effect on economic growth, trust may affect economic growth indirectly through its positive effects on human development.
Trust is not significantly associated with economic growth. However, it shows a positive and significant effect on human development. Hence, instead of having direct effect on economic growth, trust may affect economic growth indirectly through its positive effects on human development.
