Assessing Two Dimensions of Institutional Trust Building in China

Institutional trust refers to the level of trust that individuals have in an organization, system, or professional group. It is an important measure of social capital and overall social stability. This study utilizes data from the Chinese General Social Survey (CGSS), World Value Survey (WVS), and an online survey to explore the influence of two organizational characteristics—competence and moral hazard—on the patterns of institutional trust in China. We obtained three main findings. First, institutional trust decreases from central authorities/professions to local administration/business/social organizations. Second, competence and moral hazard can explain the differences in institutional trust. Higher competence and lower moral hazard are linked to higher levels of institutional trust. Third, the impact of competence on institutional trust is greater than the impact of moral hazard. We discuss the implications for how to improve institutional trust in contemporary China.