Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries
The purpose of the article. The article aims to identify and assess the impact of the financialization process on the level of happiness as an effect of sustainable development in selected Central and Eastern European countries in 2012–2022. Methodology. The research used panel models. The World H...
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| Format: | Article |
| Language: | deu |
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Lodz University Press
2024-12-01
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| Series: | Finanse i Prawo Finansowe |
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| Online Access: | https://czasopisma.uni.lodz.pl/fipf/article/view/23947 |
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| _version_ | 1850077622510288896 |
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| author | Aleksandra Ostrowska Bogdan Włodarczyk |
| author_facet | Aleksandra Ostrowska Bogdan Włodarczyk |
| author_sort | Aleksandra Ostrowska |
| collection | DOAJ |
| description | The purpose of the article. The article aims to identify and assess the impact of the financialization process on the level of happiness as an effect of sustainable development in selected Central and Eastern European countries in 2012–2022.
Methodology. The research used panel models. The World Happiness Index (WHI) was adopted as the dependent variable, taking into account social aspects of sustainable development. Financialization measures included the Financial Development Index (FDI) published by the International Monetary Fund and credit to the private sector (as a % of GDP). The models were estimated using OLS, fixed-effects and random-effects estimators. Macroeconomic variables were included in the set of explanatory variables. The most effective estimator was selected using Wald, Breusch-Pagan and Hausman tests. Robust standard errors were imposed on the models.
Results of the research. In the estimated models, the significance of parameters in the case of financialization varied depending on the estimator used. The Financial Development Index was an insignificant variable in all models. Clear significance was observed in relation to credit to the private sector (as % of GDP). Regardless of the financialization measure adopted and the estimator used, the obtained parameters for financialization indicators were negative. Although financialization may be an instrument for financing sustainable development, it does not have a positive impact on the level of happiness that results from it. The basic reasons may lie in the too low scale of financing activities related to sustainable development or in the inadequate structure of this financing. Changes in financing are needed and its redirection to activities aimed at achieving sustainable development and happiness. Future research should use other measures of financiakization and happiness that take into account aspects of sustainable development and include other countries to make a comparison. |
| format | Article |
| id | doaj-art-4baee181fcea4b568aee494a9ae64ee5 |
| institution | DOAJ |
| issn | 2391-6478 2353-5601 |
| language | deu |
| publishDate | 2024-12-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Finanse i Prawo Finansowe |
| spelling | doaj-art-4baee181fcea4b568aee494a9ae64ee52025-08-20T02:45:46ZdeuLodz University PressFinanse i Prawo Finansowe2391-64782353-56012024-12-0144472210.18778/2391-6478.4.44.0124384Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European CountriesAleksandra Ostrowska0https://orcid.org/0000-0001-5814-0530Bogdan Włodarczyk1https://orcid.org/0000-0002-8965-9957Uniwersytet Warmińsko-Mazurski w Olsztynie Uniwersytet Warmińsko-Mazurski w Olsztynie The purpose of the article. The article aims to identify and assess the impact of the financialization process on the level of happiness as an effect of sustainable development in selected Central and Eastern European countries in 2012–2022. Methodology. The research used panel models. The World Happiness Index (WHI) was adopted as the dependent variable, taking into account social aspects of sustainable development. Financialization measures included the Financial Development Index (FDI) published by the International Monetary Fund and credit to the private sector (as a % of GDP). The models were estimated using OLS, fixed-effects and random-effects estimators. Macroeconomic variables were included in the set of explanatory variables. The most effective estimator was selected using Wald, Breusch-Pagan and Hausman tests. Robust standard errors were imposed on the models. Results of the research. In the estimated models, the significance of parameters in the case of financialization varied depending on the estimator used. The Financial Development Index was an insignificant variable in all models. Clear significance was observed in relation to credit to the private sector (as % of GDP). Regardless of the financialization measure adopted and the estimator used, the obtained parameters for financialization indicators were negative. Although financialization may be an instrument for financing sustainable development, it does not have a positive impact on the level of happiness that results from it. The basic reasons may lie in the too low scale of financing activities related to sustainable development or in the inadequate structure of this financing. Changes in financing are needed and its redirection to activities aimed at achieving sustainable development and happiness. Future research should use other measures of financiakization and happiness that take into account aspects of sustainable development and include other countries to make a comparison.https://czasopisma.uni.lodz.pl/fipf/article/view/23947financializationhappinessfinancial development indexcredit to private sectorsustainable developmentcentral and eastern european countries |
| spellingShingle | Aleksandra Ostrowska Bogdan Włodarczyk Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries Finanse i Prawo Finansowe financialization happiness financial development index credit to private sector sustainable development central and eastern european countries |
| title | Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries |
| title_full | Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries |
| title_fullStr | Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries |
| title_full_unstemmed | Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries |
| title_short | Financialization and Level of Happiness in the Context of Sustainable Development. The Case of Central and Eastern European Countries |
| title_sort | financialization and level of happiness in the context of sustainable development the case of central and eastern european countries |
| topic | financialization happiness financial development index credit to private sector sustainable development central and eastern european countries |
| url | https://czasopisma.uni.lodz.pl/fipf/article/view/23947 |
| work_keys_str_mv | AT aleksandraostrowska financializationandlevelofhappinessinthecontextofsustainabledevelopmentthecaseofcentralandeasterneuropeancountries AT bogdanwłodarczyk financializationandlevelofhappinessinthecontextofsustainabledevelopmentthecaseofcentralandeasterneuropeancountries |