TRUST AS A FACTOR OF ECONOMIC DEVELOPMENT: STUDIES CONDUCTED WITHIN THE FRAMEWORK OF INSTITUTIONAL ECONOMIC THEORY

The economic development of a country is a rather complicated process so conducting a research devoted to economic development it is necessary to take into account the variety of economic, cultural, social, political and geographical factors. In the framework of Institutional theory, using the theory of social capital we have researched the hypothesis that argues that the deficit of trust entails institutional inefficiency therefore the increase of transaction costs that hampers the economic development of the country. Trust is a key factor of the decision making process that likewise plays an important role in the economic life of the country. Present level of trust determines the efficiency of political and economic institutions. In the article, we analyze the level of trust in Russian political institutions and the causes of an absence of trust in business.