Does Good Governance Foster Trust in Government? An Empirical Analysis

Abstract

This study looked at the relationship between good governance and trust in government. We used data on government trust across a sample of 29 European countries over the period 2004–2015, as well as six different aspects of governance as captured by the Worldwide Governance Indicators. We also consider GDP growth and income inequality and their correlation with trust in government. The results showed that voice and accountability, which captures freedom of expression and citizen involvement in the democratic process, was significantly related to government trust, across all specifications of our regression models. None of the other indicators yields significant results, although the coefficient for control of corruption is significant in some specifications. We also found that real GDP growth rates have a significant relationship with trust in government. A comparison of the standardised regression coefficients indicated that voice and accountability is a stronger correlate of trust in government than GDP growth. Therefore, our results suggested that good governance was a key determinant of trust in government, over and above economic considerations. We discussed the implications of these findings in light of declining levels of public trust in government around the world.

Citation

Spiteri, J. and Briguglio, M. (2018), "Does Good Governance Foster Trust in Government? An Empirical Analysis", Grima, S. and Marano, P. (Ed.) Governance and Regulations’ Contemporary Issues (Contemporary Studies in Economic and Financial Analysis, Vol. 99), Emerald Publishing Limited, Leeds, pp. 121-137. https://doi.org/10.1108/S1569-375920180000099006