The happiness paradox in development: economic, social factors and the corruption index in east asian countries
Abstract
Happiness is viewed as an important indicator of well-being in assessing development success. However, economic achievements do not always correspond with an increase in societal happiness. This phenomenon is known as the happiness paradox, which is evident in East Asian countries that serve as an interesting example because, despite having relatively good economic performance and human development, their societal happiness levels are still in the medium category globally. This study uses panel data from six East Asian countries, namely Japan, South Korea, Taiwan, China, Hong Kong, and Mongolia from 2014 to 2023. The dependent variable in this study is the happiness index, while the independent variables include Economic Growth, per capita income, unemployment rate, Education, and Corruption Level. The analytical method used is panel data regression with a Fixed Effect Model approach. The research results show that per capita income and education have a significant influence on the Happiness Index. Meanwhile, economic growth, unemployment rate, and corruption rate do not show a significant influence. These research results indicate that the increase in societal happiness in East Asia is not only determined by macroeconomic performance or labor market conditions, but is more influenced by welfare aspects related to quality of life and human development.
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