The Role of Social Capital in Determining Individual Happiness in Selected Asian Countries

Abstract

The role of social capital gained the attention in affecting happiness. Social capital and institutional trust, social networking have been a positive effect on happiness. The aim of the current research is to explore and investigate the role of social capital in subjective wellbeing. Specifically, it is concerned with the role of social capital as a significant variable in determining individual happiness. This paper uses the data taken from 6th wave of the World Values Survey from 2010-14. For that purpose, the most relevant dimensions of social capital lot of variables have been taken into account and to identified empirical dimensions of social capital a principal component analysis (PCA) has been carried out. For the empirical investigation of variables multi nominal logistic model was used. The results of multi nominal logistic model shows that age, health, marital status, income level, financial satisfaction, social trust social networks and social norms had a significant impact on happiness. The social trust and social participation in Asian countries were low as compared to the happiest countries which results the lowest happiness level in selected Asian countries. Therefore, there should a need to build and create social foundation, social trust which leads to wellbeing.