ECONOMIC GROWTH AND HAPPINESS: A CROSS-NATIONS PATH ANALYSIS MODEL
Muchdie, Muchdie
This paper directly and indirectly examines the impact of economic growth on happiness, with human development as
moderator variable. Cross-nations data on economic growth, human development, and happiness indices were collected from 124
countries and employed in a path analysis model. The results show that economic growth had a direct negative and significant impact
on both happiness and human development. Meanwhile, human development had a positive and significant direct impact on happiness.
Indirectly, through moderator variable human development, economic growth again had a negative and significant impact on
happiness. An implication of this finding was that economic growth is no longer a single important factor of a development indicator. It
is then suggested that human development, rather than economic growth, sustainably be promoted in order to make everyone always
feels happy
This paper directly and indirectly examines the impact of economic growth on happiness, with human development as
moderator variable. Cross-nations data on economic growth, human development, and happiness indices were collected from 124
countries and employed in a path analysis model. The results show that economic growth had a direct negative and significant impact
on both happiness and human development. Meanwhile, human development had a positive and significant direct impact on happiness.
Indirectly, through moderator variable human development, economic growth again had a negative and significant impact on
happiness. An implication of this finding was that economic growth is no longer a single important factor of a development indicator. It
is then suggested that human development, rather than economic growth, sustainably be promoted in order to make everyone always
feels happy