Skip to main content
SpringerLink
Log in

Does Development Make You Happy? Subjective Wellbeing And Economic Growth In Developing Countries

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

The evidence for any relationship between GDP/capita growth and growth in subjective wellbeing (SWB) in wealthier countries is disputed, at best. However, there are a number of reasons commonly articulated for thinking the relationship should be stronger in less developed countries (LDCs). This paper looks at both reasons for expecting the relationship to be stronger in developing countries, and those for a weak link that might still apply in LDCs. Finally, it turns to a limited data set to see what that might tell us. The results suggest that, at least in middle-income countries, there is little strong evidence in favor of a connection between economic growth and SWB.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Ahuvia, A. and D. Friedman: 1998, ‘Income, consumption and subjective wellbeing’, Journal of Macromarketing (Fall).

  • R. Biswas-Diener E. Diener (2001) ArticleTitle‘Making the best of a bad situation: satisfaction in the slums of Calcutta’ Social Indicators Research 55 329–352 Occurrence Handle10.1023/A:1010905029386

    Article  Google Scholar 

  • H. Cantril (1965) The Pattern of Human Concerns Rutgers New Brunswick

    Google Scholar 

  • E Cornish (1997) ArticleTitle‘Happiness and wealth’ The Futurist 31 IssueID5 S13–S15

    Google Scholar 

  • E. Diener R. Biswas-Diener (2002) ArticleTitle‘Will money increase subjective wellbeing? A literature review and guide to needed research’ Social Indicators Research 57 119–169 Occurrence Handle10.1023/A:1014411319119

    Article  Google Scholar 

  • Ed. Deiner C. Diener (1995) ArticleTitle‘The wealth of nations revisited: income and the quality of life’ Social Indicators Research 36 275–286 Occurrence Handle10.1007/BF01078817

    Article  Google Scholar 

  • E. Diener S. Oishi (2000) ‘Money and happiness: income and subjective wellbeing across nations’ E. Diener E. Suh (Eds) Subjective Wellbeing Across Cultures MIT Press Cambridge, MA

    Google Scholar 

  • J. Dusenberry (1949) Income, Saving and the Theory of Consumer Behaviour Harvard University Press Cambridge

    Google Scholar 

  • R. Easterlin (1995) ArticleTitle‘Will raising the incomes of all increase the happiness of all?’ Journal of Economic Behaviour and Organization 27 35–47 Occurrence Handle10.1016/0167-2681(95)00003-B

    Article  Google Scholar 

  • R. Easterlin (1999) ArticleTitle‘How beneficent is the market? a look at the modern history of mortality’ European Review of Economic History December 3 3257–3294

    Google Scholar 

  • W. Easterly (1997) ArticleTitle‘Life during growth’ Journal of Economic Growth 4 IssueID3 239–276 Occurrence Handle10.1023/A:1009882702130

    Article  Google Scholar 

  • A. Furnham M. Argyle (1998) The Psychology of Money Routledge London

    Google Scholar 

  • B. Geremek (1997) Poverty: A History Blackwell Oxford

    Google Scholar 

  • Graham, C. and S. Pettinato: 1999, ‘Assessing hardship and happiness: trends in mobility and expectations in the new market economies’, CSED Working Paper 7, Brookings Institution.

  • M. Hagerty R. Veenhoven (2003) ArticleTitle‘Wealth and happiness revisited: growing wealth of nations does go with greater happiness’ Social Indicators Research 64 1–27 Occurrence Handle10.1023/A:1024790530822

    Article  Google Scholar 

  • G. Ingram (1992) ‘Social indicators and productivity convergence in developing countries World Ban Policy’ World Bank Washington, DC

    Google Scholar 

  • A. Kenny (1997) A Life in Oxford Blackwell Oxford

    Google Scholar 

  • Kenny, C.: 1999, ‘Does growth cause happiness, or does happiness cause growth?’ Kyklos.

  • Kenny: 2004, ‘Why are we worried about income?’ Nearly everything that matters is converging, World Development, forthcoming.

  • A. Maddison (1995) Monitoring the World Economy 1890–1992 OECD Paris

    Google Scholar 

  • B. Milanovic B. Jovanovic (1999) ArticleTitle‘Changes in the perception of the poverty line during times of depression: Russia 1993–6’ World Bank Economic Review 13 IssueID3 539–559

    Google Scholar 

  • E. Mishan (1967) The Costs of Economic Growth Pelican London

    Google Scholar 

  • D. Myers Ed. Diener (1996) ArticleTitle‘The pursuit of happiness’ Scientific American 272 IssueID5 70–72

    Google Scholar 

  • D. Myers Ed. Diener (1997) ArticleTitle‘The science of happiness’ The Futurist 31 IssueID5 S1–S7

    Google Scholar 

  • D. Narayan (1997) Voices of the Poor: Poverty and Social Capital in Tanzania, ESSD Studies and Monographs Series No. 20 The World Bank Washington DC

    Google Scholar 

  • Pritchett Summers (1996) ArticleTitle‘Wealthier is healthier’ Journal of Human Resources 31 IssueID4 842–868

    Google Scholar 

  • A. Pigou (1912) Wealth and Welfare Macmillan London

    Google Scholar 

  • A. Sen (1980) ‘Equality of what?’ S. Mc Murrin (Eds) Tanner Lectures on Human Values i Cambridge University Press Cambridge

    Google Scholar 

  • A. Sen (1985) The Standard of Living Cambridge University Press Cambridge

    Google Scholar 

  • A. Sen (1992) Inequality Reexamined Harvard University Press Cambridge

    Google Scholar 

  • A. Smith (1982) The Theory of Moral Sentiments (Glasgow edition) Liberty Press Indianapolis

    Google Scholar 

  • A. Smith (1993) Wealth of Nations OUP Oxford

    Google Scholar 

  • Tella, R., R. MacCulloch and A. Oswald: 1997, ‘The macroeconomics of happiness the labour market consequences of technical and structural change’, Discussion Paper Series No. 19, The Leverhulme Trust.

  • InstitutionalAuthorNameUNDP (1999) Human Development Report 1999 UN New York

    Google Scholar 

  • T. Veblen (1987) The Theory of the Leisure Class Penguin New York

    Google Scholar 

  • R. Veenhoven (1994) ArticleTitle‘Is happiness a trait?’ Social Indicators Research 32 101–160 Occurrence Handle10.1007/BF01078732

    Article  Google Scholar 

  • Veenhoven, R.: 1999, ‘World Database of Happiness’, http://www/eur.nl/fsw/research/happiness.

  • InstitutionalAuthorNameWorld Bank (1999a) ‘Tanzania: peri-urban development in the African Mirror’ World Bank Washington, DC

    Google Scholar 

  • InstitutionalAuthorNameWorld Bank (1999b) World Development Indicators World Bank Washington, DC

    Google Scholar 

  • InstitutionalAuthorNameWorld Bank (1996) From Plan to Market: World Development Report 1996 Oxford University Press New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. The World Bank, 1818 H St NW, Washington, DC, 20413, USA

    Charles Kenny

Authors
  1. Charles Kenny
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Charles Kenny.

Additional information

Thanks to commentators including R. Cummins, R. Veenhoven and J. Bernheim and A. Kenny as well as participants at a World Bank seminar and an anonymous reviewer for their comments on earlier drafts. The paper reflects the opinions of the author, not necessarily those of the World Bank or its executive directors.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kenny, C. Does Development Make You Happy? Subjective Wellbeing And Economic Growth In Developing Countries. Soc Indic Res 73, 199–219 (2005). https://doi.org/10.1007/s11205-004-0986-4

Download citation

  • Accepted:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-004-0986-4

Keywords

Search

Navigation