Association of Economic Internality With Saving Behavior and Motives, Financial Confidence, and Attitudes Toward State Intervention1

Abstract

This study investigates economic locus of control (ELOC) in a Greek sample using Furnham's (1986) scale. In particular, it examines the association between ELOC and saving behavior and motives, attitudes toward state intervention in the economic field, and factors engendering confidence in economic matters. The main hypotheses predicted that internal ELOC should be associated with (a) desire for less state intervention; (b) confidence in factors under one's own control (knowing the other party in transactions, being well informed) more strongly than with other factors of economic trust, such as the state and the law; (c) more saving; and (d) that respondents with internal and external ELOC should be differentiated with respect to saving motives. Analysis was based on a sample of 135 participants from Athens. Principal components analysis of the Greek translation of Furnham's ELOC questionnaire gave results similar to those reported from England, yielding 4 factors interpretable as chance, internal, external/denial, and powerful others. The findings of the study include confirmation of all of the hypotheses.