Good Governance and Happiness: Does Technical Quality of Governance Lead to Happiness Universally in both Rich and Poor Countries?

Abstract

This study attempts to examine the effect of good governance or quality of government on the happiness and find out whether the technical quality of governance lead to happiness universally in both rich and poor countries. The study applies multi-level analyses on happiness data from WVS to examine the interplay of individual characteristics and the country context. Unlike the previous literature that argue that efficient government are of importance for both richer and poorer countries, this study finds that good governance enhances the level of happiness only in the high-income countries. Specifically, the effect of technical or delivery quality of governance is limited to relatively rich nations, suggesting that improvement of the technical quality of governance, or efficiency-oriented transformation of government does not ineluctably lead to a higher level of happiness.