IDEAS home Printed from https://ideas.repec.org/a/spr/jhappi/v25y2024i3d10.1007_s10902-024-00738-7.html
   My bibliography  Save this article

Does Being Globalized Matter for Happiness in African Countries?

Author

Listed:
  • Mbiankeu Nguea Stéphane

    (University of Dschang, Faculty of Economics and Management)

  • Isssidor Noumba

    (University of Dschang, Faculty of Economics and Management
    Faculty of Economics and Management)

Abstract

Nowadays globalization seems to be an irresistible phenomenon that affects all countries around the world, including developed and developing countries. In that context, the purpose of this paper is to check whether increasing globalization level spreads happiness in Africa. We employ a dynamic panel data model on 34 African countries over the period 2006–2019 to assess the effect of globalization on happiness. We used the two-step system generalized method of moments estimator to control for potential endogeneity of regressors and unobserved heterogeneity. We find that globalization is positively associated with happiness. Among the sub-indexes of globalization, economic and political globalization enhance happiness while social globalization worsens happiness. In addition, the effects of globalization on happiness are sensitive to the level of human development, democratization and natural resource wealth. Specifically, the positive effect of globalization turns out to be more robust in democratic and non-oil producing countries than in autocratic and oil-producing countries. Similarly, the effects of globalization are positive in high-human development countries while these effects remain negative in low-human development countries. Furthermore, the results also show that unemployment and inflation are the channels through which economic globalization positively affects happiness.

Suggested Citation

  • Mbiankeu Nguea Stéphane & Isssidor Noumba, 2024. "Does Being Globalized Matter for Happiness in African Countries?," Journal of Happiness Studies, Springer, vol. 25(3), pages 1-27, March.
  • Handle: RePEc:spr:jhappi:v:25:y:2024:i:3:d:10.1007_s10902-024-00738-7
    DOI: 10.1007/s10902-024-00738-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10902-024-00738-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10902-024-00738-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kamal Kasmaoui & Othmane Bourhaba, 2017. "Happiness and Public Expenditure: Evidence from a Panel Analysis," Working papers of CATT hal-02625987, HAL.
    2. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
    3. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    4. Christian Bjørnskov & Axel Dreher & Justina Fischer, 2008. "Cross-country determinants of life satisfaction: exploring different determinants across groups in society," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 119-173, January.
    5. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    6. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    7. Bergh, Andreas & Nilsson, Therese, 2014. "Is Globalization Reducing Absolute Poverty?," World Development, Elsevier, vol. 62(C), pages 42-61.
    8. Hessami, Zohal, 2011. "Globalization's winners and losers--Evidence from life satisfaction data, 1975-2001," Economics Letters, Elsevier, vol. 112(3), pages 250-253, September.
    9. Bruno S. Frey, 2018. "Economics of Happiness," SpringerBriefs in Economics, Springer, number 978-3-319-75807-7, September.
    10. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    11. Ingebjørg Kristoffersen, 2017. "The Metrics of Subjective Wellbeing Data: An Empirical Evaluation of the Ordinal and Cardinal Comparability of Life Satisfaction Scores," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 845-865, January.
    12. Sinha, Avik & Sengupta, Tuhin, 2019. "Impact of natural resource rents on human development: What is the role of globalization in Asia Pacific countries?," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    13. Cameron, David R., 1978. "The Expansion of the Public Economy: A Comparative Analysis," American Political Science Review, Cambridge University Press, vol. 72(4), pages 1243-1261, December.
    14. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    15. Alan B. Krueger & Andreas I. Mueller, 2012. "Time Use, Emotional Well-Being, and Unemployment: Evidence from Longitudinal Data," American Economic Review, American Economic Association, vol. 102(3), pages 594-599, May.
    16. Jaap Nieuwenhuis & Beate Völker & Henk Flap, 2013. "“A Bad Neighbour Is as Great a Plague as a Good One Is a Great Blessing†: On Negative Relationships between Neighbours," Urban Studies, Urban Studies Journal Limited, vol. 50(14), pages 2904-2921, November.
    17. Kouladoum, Jean-Claude & Ngouhouo, Ibrahim & Wendji Miamo, Clovis, 2023. "Wellbeing in Africa: The role of technology transfer," Technology in Society, Elsevier, vol. 73(C).
    18. Henri Njangang, 2019. "Governance and Happiness in African countries," Economics Bulletin, AccessEcon, vol. 39(2), pages 1546-1555.
    19. Dixit, Avinash & Norman, Victor, 1986. "Gains from trade without lump-sum compensation," Journal of International Economics, Elsevier, vol. 21(1-2), pages 111-122, August.
    20. Adams, Dawda & Adams, Kweku & Ullah, Subhan & Ullah, Farid, 2019. "Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries," Resources Policy, Elsevier, vol. 61(C), pages 128-140.
    21. Gordon, David F., 1996. "Sustaining economic reform under political liberalization in Africa: Issues and implications," World Development, Elsevier, vol. 24(9), pages 1527-1537, September.
    22. Paul Dolan & Daniel Kahneman, 2008. "Interpretations Of Utility And Their Implications For The Valuation Of Health," Economic Journal, Royal Economic Society, vol. 118(525), pages 215-234, January.
    23. Joseph Stiglitz & Amartya K. Sen & Jean-Paul Fitoussi, 2009. "The measurement of economic performance and social progress revisited: Reflections and Overview," SciencePo Working papers Main hal-01069384, HAL.
    24. Abbott Ferriss, 2002. "Religion and the Quality of Life," Journal of Happiness Studies, Springer, vol. 3(3), pages 199-215, September.
    25. Auty, R. & Warhurst, A., 1993. "Sustainable development in mineral exporting economies," Resources Policy, Elsevier, vol. 19(1), pages 14-29, March.
    26. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    27. Sabna Ali & Syed Mansoob Murshed & Elissaios Papyrakis, 2020. "Happiness and the Resource Curse," Journal of Happiness Studies, Springer, vol. 21(2), pages 437-464, February.
    28. Lena Malesevic Perovic & Sivia Golem, 2010. "Investigating Macroeconomic Determinants of Happiness in Transition Countries," Eastern European Economics, Taylor & Francis Journals, vol. 48(4), pages 59-75, January.
    29. Stéphane Mbiankeu Nguea & Issidor Noumba & Armand Gilbert Noula, 2020. "Does Globalization improve Health in Sub-Saharan African countries?," Economics Bulletin, AccessEcon, vol. 40(4), pages 3033-3045.
    30. Mignamissi, Dieudonné & Malah Kuete, Yselle Flora, 2021. "Resource rents and happiness on a global perspective: The resource curse revisited," Resources Policy, Elsevier, vol. 71(C).
    31. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    32. Florian Dorn & Clemens Fuest & Niklas Potrafke, 2017. "Globalisation and Income Inequality Revisited," European Economy - Discussion Papers 056, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    33. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    34. Daniel M. Gropper, Robert A. Lawson, and Jere T. Thorne Jr., 2011. "Economic Freedom and Happiness," Cato Journal, Cato Journal, Cato Institute, vol. 31(2), pages 237-255, Spring/Su.
    35. Noumba, Issidor & Nguea, Stéphane Mbiankeu, 2023. "Assessing the role of globalization for universal electricity access," International Economics, Elsevier, vol. 174(C), pages 180-195.
    36. Stéphane Mbiankeu Nguea, 2023. "Improving human development through urbanization, demographic dividend and biomass energy consumption," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2517-2535, August.
    37. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    38. Noumba, Issidor & Noula, Armand Gilbert & Nguea, Stéphane Mbiankeu, 2022. "Do globalization and resource rents matter for human well-being? Evidence from African countries," International Economics, Elsevier, vol. 170(C), pages 49-65.
    39. repec:spo:wpecon:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    40. Hervé Kaffo Fotio & Stéphane Mbiankeu Nguea, 2022. "Access to water and sanitation in Africa: Does globalization matter?," International Economics, CEPII research center, issue 170, pages 79-91.
    41. Ming-Chang Tsai, 2007. "Does globali zation affect human well-being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(1), pages 103-126, March.
    42. Stéphane Mbiankeu Nguea, 2020. "Openness and Government Size in Sub-Saharan African countries," Economics Bulletin, AccessEcon, vol. 40(4), pages 2669-2676.
    43. KASMAOUI, Kamal & BOURHABA, Othmane, 2017. "Happiness and Public Expenditure: Evidence from a panel analysis," MPRA Paper 79339, University Library of Munich, Germany.
    44. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    45. Helliwell, John F. & Huang, Haifang & Grover, Shawn & Wang, Shun, 2018. "Empirical linkages between good governance and national well-being," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1332-1346.
    46. Arthur A. Stone & Stefan Schneider & Alan Krueger & Joseph E. Schwartz & Angus Deaton, 2018. "Experiential Wellbeing Data from the American Time Use Survey: Comparisons with Other Methods and Analytic Illustrations with Age and Income," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 359-378, February.
    47. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    48. M. Sirgy & Dong-Jin Lee & Chad Miller & James Littlefield, 2004. "The Impact of Globalization on a Country's Quality of Life: Toward an Integrated Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 68(3), pages 251-298, September.
    49. Gregg Huff, 2007. "Globalization, Natural Resources and Foreign Investment: A View from the Resource-Rich Tropics," Working Papers 2007_16, Business School - Economics, University of Glasgow.
    50. Welander, Anna & Lyttkens, Carl Hampus & Nilsson, Therese, 2015. "Globalization, democracy, and child health in developing countries," Social Science & Medicine, Elsevier, vol. 136, pages 52-63.
    51. Fotio, Hervé Kaffo & Nguea, Stéphane Mbiankeu, 2022. "Access to water and sanitation in Africa: Does globalization matter?," International Economics, Elsevier, vol. 170(C), pages 79-91.
    52. Issidor Noumba & Armand Gilbert Noula & Stéphane Mbiankeu Nguea, 2022. "Do globalization and resource rents matter for human well-being? Evidence from African countries," International Economics, CEPII research center, issue 170, pages 49-65.
    53. Barbara Dluhosch & Daniel Horgos, 2013. "Trading Up the Happiness Ladder," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 973-990, September.
    54. Easterlin, Richard A., 2016. "Happiness, Growth, and the Life Cycle," OUP Catalogue, Oxford University Press, number 9780198779988 edited by Hinte, Holge & Zimmermann, Klaus F., Decembrie.
    55. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    56. Chun-Hung A. Lin & Suchandra Lahiri & Ching-Po Hsu, 2017. "Happiness and Globalization: A Spatial Econometric Approach," Journal of Happiness Studies, Springer, vol. 18(6), pages 1841-1857, December.
    57. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
    58. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    59. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noumba, Issidor & Nguea, Stéphane Mbiankeu, 2023. "Assessing the role of globalization for universal electricity access," International Economics, Elsevier, vol. 174(C), pages 180-195.
    2. Noumba, Issidor & Noula, Armand Gilbert & Nguea, Stéphane Mbiankeu, 2022. "Do globalization and resource rents matter for human well-being? Evidence from African countries," International Economics, Elsevier, vol. 170(C), pages 49-65.
    3. Ariel Herbert Fambeu & Georges Dieudonné Mbondo & Patricia Tchawa Yomi, 2022. "Bigger or better? The effect of public spending on happiness in Africa," African Development Review, African Development Bank, vol. 34(4), pages 487-499, December.
    4. Njangang, Henri & Asongu, Simplice A. & Tadadjeu, Sosson & Nounamo, Yann & Kamguia, Brice, 2022. "Governance in mitigating the effect of oil wealth on wealth inequality: A cross-country analysis of policy thresholds," Resources Policy, Elsevier, vol. 76(C).
    5. Slesman, Ly, 2022. "The elusive curse of natural resources on happiness," Resources Policy, Elsevier, vol. 79(C).
    6. Mignamissi, Dieudonné & Malah Kuete, Yselle Flora, 2021. "Resource rents and happiness on a global perspective: The resource curse revisited," Resources Policy, Elsevier, vol. 71(C).
    7. Paleologou, Suzanna-Maria, 2022. "Happiness, democracy and socio-economic conditions: Evidence from a difference GMM estimator," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    8. Georges Ngnouwal Eloundou & Blaise Ondoua Beyene & Marius Messoh Lonte, 2023. "In pursuit of Happiness in developing countries: does the diffusion of ICT matter?," Economics Bulletin, AccessEcon, vol. 43(4), pages 1730-1740.
    9. Benjamin Schalembier, 2016. "The Impact of Exposure to Other Countries on Life Satisfaction: An International Application of the Relative Income Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 221-239, August.
    10. Mateo Zokalj, 2016. "The impact of population aging on public finance in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 40(4), pages 383-412.
    11. Georgios Efthyvoulou, 2012. "Political budget cycles in the European Union and the impact of political pressures," Public Choice, Springer, vol. 153(3), pages 295-327, December.
    12. Fotio, Hervé Kaffo & Nguea, Stéphane Mbiankeu, 2022. "Access to water and sanitation in Africa: Does globalization matter?," International Economics, Elsevier, vol. 170(C), pages 79-91.
    13. Stéphane Mbiankeu Nguea & Armand Gilbert Noula & Issidor Noumba, 2024. "Financial Globalization and Democracy: Implications for Economic Growth in African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3355-3379, March.
    14. Marta Spreafico, 2013. "Institutions, the resource curse and the transition economies: further evidence," DISCE - Working Papers del Dipartimento di Politica Economica ispe0064, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Marie Blaise & Laetitia Dillenseger, 2023. "Informal Caregivers and Life Satisfaction: Empirical Evidence from the Netherlands," Journal of Happiness Studies, Springer, vol. 24(6), pages 1883-1930, August.
    16. Tsopmo, Pierre Christian & Mbouombouo Vessah, Salim Ahmed & Soumtang Bime, Valentine & Mondjeli Mwa Ndjokou, Itchoko Motande, 2024. "Do African countries avoid the curse of natural resources on social cohesion?," Resources Policy, Elsevier, vol. 98(C).
    17. Stéphane Mbiankeu Nguea, 2023. "Improving human development through urbanization, demographic dividend and biomass energy consumption," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2517-2535, August.
    18. Benarroch, Michael & Pandey, Manish, 2012. "The relationship between trade openness and government size: Does disaggregating government expenditure matter?," Journal of Macroeconomics, Elsevier, vol. 34(1), pages 239-252.
    19. Kamguia, Brice & Keneck-Massil, Joseph & Nvuh-Njoya, Youssouf & Tadadjeu, Sosson, 2022. "Natural resources and innovation: Is the R&D sector cursed too?," Resources Policy, Elsevier, vol. 77(C).
    20. Désiré Avom & Itchoko M. M. Mwa Ndjokou & Pierre C. Tsopmo & Cherif Abdramane & Simplice A. Asongu, 2024. "Duration in Power and Happiness in the World," Working Papers of the African Governance and Development Institute. 24/033, African Governance and Development Institute..

    More about this item

    Keywords

    Globalization; Happiness; Democracy; Human development; Oil; Africa;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jhappi:v:25:y:2024:i:3:d:10.1007_s10902-024-00738-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.