Ekonomisk tillväxt och lycka

Abstract

This thesis investigates the relationship between economic growth and self-reported happiness in 45 European countries during the periods of 2011 and 2014-2022. In addition to economic growth, the effects of factors such as unemployment, health, and equality are also analyzed. Data has been collected from the World Bank and Our World in Data. To analyze these relationships, a fixed effects regression analysis and clustering are used, supplemented by tests for multicollinearity and scatter plots. The results of the study indicate that economic growth has no significant effect on happiness when our control variables are included in the analysis. Furthermore, there is no strong multicollinearity among the independent variables. However, when examining the relationship between economic growth and happiness alone, a weak positive correlation is observed. The conclusion drawn from the results is that economic growth has a lesser impact on happiness in countries with high GDP per capita. Conversely, economic growth has a stronger effect on the level of happiness in countries with lower GDP per capita. This suggests that economic growth may be more crucial for improving happiness in less economically developed countries, while other factors may play a more significant role in more developed economies.