BALANCING THE BOOKS: INVESTIGATING THE MEDIATING ROLES OF TRUST AND GOVERNANCE QUALITY IN PUBLIC PARTICIPATION AND GOVERNANCE COSTS MEDIATION ANALYSIS RESULTS

Abstract

This research investigates the mediating roles of trust and governance quality in the complex interplay between public participation and governance costs within Eraviperoor Gram Panchayat. Using a mixed-methods approach, the study combines quantitative survey data with qualitative insights to provide a comprehensive analysis. Quantitative analysis, conducted through Structural Equation Modeling (SEM) in SPSS AMOS, reveals significant path coefficients. The study accepts the alternate hypotheses, demonstrating that trust acts as a mediator between public participation and the cost of governance, while governance quality mediates the relationship between public participation and governance costs. Path coefficients emphasize the positive impact of public participation on trust (β = 0.82) and governance quality (β = 0.88), indicating that increased public engagement enhances these mediating factors. Furthermore, trust negatively affects the cost of governance (β = -0.36), and governance quality significantly reduces governance costs (β = -0.70). These findings highlight the critical roles of trust and governance quality in influencing the financial dimensions of Gram Panchayat governance. Qualitative insights obtained through in-depth interviews and focus group discussions provide contextual depth, offering a nuanced understanding of local factors shaping trust, governance quality, and their implications for governance costs. This research contributes valuable insights for Gram Panchayat Institutions seeking to optimize their governance processes. Local administrations can navigate challenges and promote sustainable governance practices by fostering trust, improving governance quality, and enhancing public participation. The study’s findings contribute to the broader discourse on local governance, emphasizing the importance of trust and governance quality in achieving financial sustainability.

Keywords: Public Participation, Trust, Governance Quality, Governance Costs, Structural Equation Modeling (SEM), Gram Panchayat, Local Governance.