The Relationship Between Institutional Quality and Subjective Well-Being: A Study on Latin America

Year 2025, Volume: 9 Issue: 2, 903 - 926, 25.05.2025

Gülşah Adam , Ayşegül Yıldız

https://doi.org/10.25295/fsecon.1538475

Abstract

Since its earliest development, the field of economics has been concerned with identifying the fundamental drivers of human welfare. Economists such as Adam Smith, John Stuart Mill, and David Ricardo, who adhered to the classical economic view, emphasised that the basic elements that shape human well-being are concepts such as institutions, public policies, and the rule of law. In light of these discussions, this study analyses the relationship between the quality of formal institutions and subjective well-being in Latin American countries. While subjective well-being is measured by individuals’ life satisfaction, the quality of formal institutions is evaluated based on factors such as the level of democratisation, the legal quality index, and the share of government consumption expenditures in national consumption. The research uses Gallup World Poll (GWP) data covering Latin American countries for the period 2010-2021. The findings show that there is a significant and positive relationship between legal quality index and subjective well-being. In addition, it is observed that low levels of government consumption within total government expenditures positively impact subjective well-being. This study draws attention to the importance of institutional quality in ensuring social peace in Latin America by highlighting the effect of institutional improvements on the well-being of individuals for policymakers.

Keywords

Institutional Quality, Subjective Well-being, Structural Equation Modeling

Kurumlar Kalitesi ve Öznel İyi Oluş: Latin Amerika Üzerine Bir İnceleme

Abstract

İktisat temellerinin atıldığı günden bu yana, ekonomistler bireylerin refah düzeyine etki eden faktörleri anlamaya çalışmaktadır. Klasik iktisat görüşüne bağlı Adam Smith, John Stuart Mill ve David Ricardo gibi iktisatçılar insan refahını şekillendiren temel unsurların kurumlar, kamu politikaları ve hukukun üstünlüğü gibi kavramlar olduğunu vurgulamıştır. Bu tartışmalar ışığında mevcut çalışma, Latin Amerika ülkelerinde resmi kurumsal kalite ile öznel iyi oluş arasındaki ilişkiyi analiz etmektedir. Öznel iyi oluş, bireylerin yaşam memnuniyeti ile ölçülürken, resmi kurumsal kalite demokratikleşme düzeyi, hukuki kurumsal kalite endeksi ve kamu tüketim harcamalarının toplam harcamalar içindeki payı gibi faktörler temel alınarak değerlendirilmiştir. Araştırma, 2010-2021 dönemine ait Latin Amerika ülkelerini kapsayan Gallup Dünya Anketi (GWP) verilerini kullanmaktadır. Bulgular, yüksek hukuki kurumsal kalite ve öznel iyi oluş seviyeleri arasında anlamlı ve pozitif bir ilişki olduğunu göstermektedir. Ayrıca, kamu tüketim harcamalarının toplam harcamalar içindeki payının düşüklüğünün bireylerin yaşamdan duydukları memnuniyeti artırdığı gözlemlenmiştir. Bu çalışma, politika yapıcılar için, kurumsal kalite iyileştirmelerinin bireylerin refahına olan etkisini vurgulayarak, Latin Amerika'da toplumsal huzurun sağlanmasında kurumsal kalitenin önemine dikkat çekmektedir.

Keywords

Kurumsal Kalite, Öznel İyi Oluş, Yapısal Eşitlik Modellemesi

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