Interaction of Institution and Globalization on Misery Index

Document Type : Original Article

Authors

1 Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran. a.shahabadi@alzahra.ac.ir

2 Master of Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

10.48308/jem.2024.234657.1891

Abstract

Among the people of the society, the misery index can indicate the degree of difficulty that people Society experiences. Since this index somehow represents the economic situation of a country, economic decisions such as investment can be made based on it. The misery index is an economic indicator that is obtained from the sum of the inflation rate and the unemployment rate, and its increase means a decrease in social welfare and the spread of poverty. this research with using panel data and generalized method of moments estimated the interaction of institutions and globalization on the misery index in two groups of countries with per capita income above 25 thousand dollars and countries with per capita income below 25 thousand dollars during the period of 2008-2020. The estimation results show that the governance institutional index has a negative and significant effect on the misery index in both groups of selected countries. Based on this, a one percent improvement in the quality of governance will reduce the misery index 0.26 percent in countries with high per capita income and 0.14 percent in countries with low per capita income. Also, the globalization index has a negative and significant effect on the misery index in both groups of selected countries It means that a one percent increase in globalization reduces the misery index by 0.53 percent in high per capita income countries and 0.29 percent in low per capita income countries.

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Journal of Economics and Modelling
Volume 14, Issue 3 - Serial Number 55
October 2023
Pages 109-138

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