Happiness and Economic Growth: A cross sectional analysis

Abstract

Happiness is something that cannot be measured. It is more like a way of living than a state. People thrives for it but it never came out to be an important matter of discussion that happiness depends on what? It can be measured in many ways and effected by various types of variables. This paper visits the thought of whether happiness depends on economic growth using a cross sectional regression model. For the purpose of this study data were collected from 15 developed countries and 15 developing countries, and data were collected from the year 2017 specifically from World Happiness Report 2017. The paper also tends to see how much it effects both the developed and developing countries separately. The result from Cross Sectional Analysis suggests that Happiness and Economic Growth is positively related and it is more significant in developed countries than developing countries. It is anticipated that outcomes from this research will help to show a clearer picture of the relationship between nations’ happiness and economic growth.