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CHALLENGES OF PUBLIC SECTOR GOVERNANCE ON MAXIMIZING CITIZENS WELFARE

O. R. Lobont, I. Para, S. Vatavu, L. Jicarean
Thursday 8 November 2018 by Libadmin2018

ABSTRACT

The research aims to explain the relationship between governance and welfare, analysing 20 countries, some of the richest and most developed countries in Europe, and some developing countries. The period analysed is 2002–2016. While the World Database of Happiness is the source for welfare data, for governance we used the Worldwide Governance Indicators from the World Bank. The latter ones are widely used as some of the best comparable international governance indicators, having perception-based measures from the citizens, as well as from analysts in development agencies, from non-governmental organizations or providers of commercial information. The analysis shows that government ratings changed over time in the European countries. The most relevant changes indicate a decline in corruption control, followed by a slight increase of corruption, and even a decrease in governance efficiency. The results also prove a direct relationship between the average of governance and happiness measures, as better governance is associated with greater welfare. It seems that citizens are happier in well-governed states and, at least to some extent, there is a positive effect that good governance has on happiness. In addition, a higher level of political stability, regulatory quality, and rule of law, along with the absence of violence, can significantly increase happiness in the region. Welfare also tends to increase if the citizens actively involve in the government selection and use their freedom of expression to support better governance.

Keywords: happiness, governance, EU countries


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