Does globalization lead to happiness? : experience from Asian lower-middle income countries using pooled mean group (PMG) model

The economics of happiness has emerged as an important area of research in the past few decades. The well-being of the lower-middle income countries has remained in question, especially after the adoption of the globalization. The objective of the chapter is to examine the impact of globalization on happiness in Asian lower-middle income countries (LMICs) from the period 2006 to 2016. The chapter used cross-sectionally augmented ADF (CADF), cross-sectionally augmented IPS (CIPS) unit root, and Westerlund cointegration tests to accomplish the objective. To estimate the long-run and short-run impact, the pooled mean group (PMG) model is applied. KOF economic globalization index and Cantril ladder data are used as a proxy for globalization and happiness, respectively. The empirical results show that globalization has a positive impact on happiness in the long run. While in the short run, it affects happiness negatively. The study suggests utilizing the fruits of globalization in promoting inclusive and sustainable economic growth for happiness in selected LMICs.