The Relationship Between Gross Domestic Product and People’s Happiness in Selected ASEAN Countries
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Abstract
This study aims to examine the relationship between Gross Domestic Product (GDP) and people's happiness, and to investigate other factors associated with happiness in seven ASEAN countries: Thailand, Singapore, Cambodia, the Philippines, Indonesia, Viet Nam, and Malaysia. Annual secondary panel data from 2008–2021 were analyzed. The Happiness Index was used as the dependent variable, while economic, health, social, governance, government effectiveness, and demographic factors served as independent variables. Panel data analysis was conducted, and the Hausman test supported the selection of the Random Effects model. The analysis also incorporated time-fixed effects and lagged variables. The results from the estimation using variables in first-difference form indicate that GDP per capita has no statistically significant relationship with people's happiness. In contrast, the Education Index in the same period demonstrates a consistently positive and statistically significant relationship with happiness, suggesting that educational development is associated with higher levels of people's happiness. In addition, government effectiveness is positively associated with happiness, while the suicide mortality rate and the Corruption Perceptions Index are negatively associated with happiness. The lagged value of the Corruption Perceptions Index, however, is positively associated with happiness, suggesting that the effects of reducing corruption may take time to be reflected in people's happiness. These findings suggest that promoting people's happiness should not rely solely on economic growth but should also emphasize improvements in education, health, and public governance in order to enhance quality of life and achieve sustainable well-being.
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