Question

1. How is happiness related to development?

2. Explain why geography and economic institutions are considered to be two of several long run causes of comparative development.

Answer 1

Answer-1. Happiness related to development, it is generally assumed that happiness is a major source of motivation. Results shows that social factors are the most important factors drivers of happiness and therefore influencing positively individual's contribution in economic development. However, economic factors and political factors show that social factors are the main source of happiness for our sample leading to a better economic development.

Answer-2. Geography can also affect economic development in a number of ways.Analysis of current data sets show three significant implications of geography on developing nations. First, access to sea routes is important, sea travel is much cheaper and faster than that of land, leading to a wider and quicker dissemination of both resources and ideas, both of which are integral to economic stimulus. Geography affects development is through agricultural productivity, temperate regions have shown the highest output of major grains.

Economic development is generally defined as the development of economic wealth of countries, region for well being of their inhabitant. Economic institution strongly affect economic development of the countries and act in society at all levels by determining the frameworks in which economic exchange occurs.