Human Development and Sterling's Paradox: Evidence from Developing Countries

Document Type : Research Paper

Authors

1 Department of Public Policy and Political Economy, Faculty of Law and Political Sciences, Allameh Tabatabai University, Tehran, Iran.

2 Department of Economics, Faculty of Management and Economics, Shahid Bahonar University, Kerman, Iran.

3 Department of Economics, Faculty of Human Sciences, Ayatollah Borujerdi University, Borujerd, Iran.

10.22103/jdc.2025.24386.1514

Abstract

Objective: Achieving a happy society has become one of the most important goals of societies. Thus, achieving this goal has attracted the attention of governments, policymakers, and researchers. Therefore, the purpose of this study is to investigate the impact of human development on happiness in selected developing countries.
 
Method: For this purpose, the generalized moment estimator (GMM) model, which is based on dynamic panel models, was used to investigate the impact of human development on happiness in selected developing countries during the period 2007-2022.
 
Results: Based on the results obtained, the logarithm of happiness (LHAP) can increase the happiness variable by 1.20 percent with a lag. The human development index has had a positive and significant effect on happiness. So that with a one percent increase in the human development index, happiness increases by 1.39 percent. Other results indicate that the logarithm of government size and the logarithm of economic openness lead to increased happiness, and the logarithm of income inequality leads to decreased happiness.
 
Conclusion: Therefore, in developing countries, governments with more budget specialization in education and health sectors with the aim of increasing the standard of living have caused people's satisfaction, which in turn increases people's happiness and vitality.

Keywords

Main Subjects

References

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Journal of Development and Capital
Volume 11, Issue 1 - Serial Number 20
January 2026
Pages 121-136

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History

  • Receive Date: 18 November 2024
  • Revise Date: 29 April 2025
  • Accept Date: 20 May 2025

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