Whether control of corruption matters for happiness: evidence from panel data analysis

Abstract

Purpose- Paper aims to give empirical evidence on the impact of control of corruption on happiness as a proxy of social progress by collecting panel data for 59 countries over the period 2007-2016. Methodology- Initial as well as extended model that controls for government consumption are estimated using linear static and dynamic panel data estimators. In order to test for the sensitivity of the results and to estimate short- and long-run coefficients, panel ARDL framework is employed. Findings- The results of linear static and dynamic panel data estimators indicate the significant positive impact of control of corruption on happiness in both, initial and extended models. ARDL model reports a significant relationship between control of corruption and happiness in initial and extended model only in the long-run. Conclusion- The convergence process from corrupt to hones politics is complex and is likely to be achieved only in the long-run period.