Does quality of governance contribute to the heterogeneity in happiness levels across MENA countries?

Jamile Youssef,Sara Diab

doi:10.1108/jbsed-03-2021-0027

Abstract

PurposeHappiness levels differ among the Middle East and North African (MENA) countries and follow a downtrend, making such heterogeneity a popular topic to investigate. The paper aims to study the contribution of governance quality on the heterogeneity in happiness levels across MENA countries while controlling for demographic and socioeconomic variables.Design/methodology/approachThe paper applies panel random-effects regression analysis on three samples: full sample, rich and poor subsamples, using data from 20 MENA countries over the 2007–2017 period.FindingsThe empirical results for the full sample conclude that better technical quality of governance increases happiness in the region. Furthermore, findings suggest that political stability and absence of violence matters for people's happiness only in rich countries. Whereas, control of corruption is positively associated with happiness level in the full sample and poor subsample. Across all three samples, voice and accountability has no impact on happiness.Research limitations/implicationsA possible limitation of the paper is using an index for happiness based on a subjective weight distribution. Therefore, researchers are encouraged to implement a novel method using data envelopment analysis.Practical implicationsThis paper includes implications for policymakers in the MENA region. Governments should strengthen existing laws and create a comprehensive database of laws, fight corruption and prioritize raising income.Originality/valueThis paper is the first to categorize MENA countries into rich and poor to analyze how governance quality contributes to the heterogeneity in happiness levels.

Highlights

Numerous researchers from different fields have gained interest in studying happiness as a topic since it has become the priority of people globally
Starting with model 1, which controls for demographic and socio-economic factors, we observe that gross domestic product (GDP) per capita has a positive, significant effect on happiness in the Middle East and North African (MENA) region
Unemployment rate negatively affects happiness level; yet, its significance level varies across all models

Summary

Introduction

Numerous researchers from different fields have gained interest in studying happiness as a topic since it has become the priority of people globally. Happiness was first studied from a psychological view and extended to include sociological and afterward economic perspectives to explore the reasons behind the heterogeneity in happiness levels across countries (Sgroi et al, 2017). Happiness had expanded from a micro perspective to be reflected at the macro-level, leading researchers and policymakers to study its determinants in depth. Published in Journal of Business and Socio-economic Development. The full terms of this licence may be seen at http://creativecommons. org/licences/by/4.0/legalcode

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