Lee, Yok-Yong and Goh, Kim-Leng (2023) The Happiness-Economic Well-Being Nexus: New Insights From Global Panel Data. SAGE Open, 13 (4). ISSN 2158-2440, DOI https://doi.org/10.1177/21582440231199659.
Full text not available from this repository.Abstract
This paper explores whether happiness-led growth policies implemented in some countries are viable for achieving better economic well-being proxied by GDP per capita using a panel dataset covering 104 countries from 2006 to 2018. While past studies showed that economic growth promotes happiness, this paper applied the panel Granger causality test to show that GDP per capita is also determined by happiness. Accordingly, the pooled ordinary least squares, random-effects model, fixed-effects model, and two-step generalized method of moments were employed to estimate the effect of changes in happiness on economic growth. The empirical results suggest that economic growth of 1% to 3% can be obtained by increasing happiness. The positive effect of happiness is about four times greater in developed countries than in developing countries. This paper reveals that happiness should be included in conventional economic growth models to achieve a holistic approach in designing development policies.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | economic growth; economic well-being; generalized method of moments (GMM); Granger causality; happiness |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Business and Economics Universiti Malaya |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 08 Sep 2025 02:50 |
| Last Modified: | 08 Sep 2025 02:50 |
| URI: | http://eprints.um.edu.my/id/eprint/50630 |
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