Institutional Trust and Economic Decision-Making in Japan and Pakistan: How Citizens Perceive Public Corruption and Market Fairness

Abstract

This study explores the experiences of the citizens in Japan and Pakistan in terms of institutional trust, public corruption, and market fairness by presenting a comparative narrative inquiry approach. The study, based on detailed narrative descriptions, examines how people derive meaning from their experiences with state and market players, and how such meanings influence the choices people make economically. The results indicate that Japanese members define institutions as predictable, competent, and culturally consistent with standards of harmony and responsibility, which allow the participants to plan long-term and support expectations of equity. In comparison, Pakistani respondents describe institutions as unstable, disjointed, and dependent on discretionary practices, leading to short-term, risk-averse economic policies and increased dependency on informal social networks. The research points out that institutional trust is inherently influenced by culture, continuity in history, and experience, unlike the indicators of performance at the institution. The comparative lessons advance the wider arguments about governance, corruption and economic behaviour by demonstrating how trustworthy and untrustworthy settings affect the coping mechanism and understanding of fairness among citizens. This study identifies the significance of enhancing service delivery and transparency in low-trust settings and ensuring responsiveness and accountability in high-trust systems. These results provide a basis for further cross-cultural and longitudinal studies of trust and institutional legitimacy.