Impact of government quality on post-COVID subjective well-being in Pakistan: the mediating role of financial stress

Abstract

COVID-19 has badly affected the psychological well-being of people all over the globe, especially in developing countries, due to the loss of jobs, social capital and stress. The present study is also designed to analyze the impact of government quality on subjective well-being (SWB) after the pandemic through the mediating role of financial stress. This study uses the data of 599 respondents in Pakistan and applies mixed methodology in Generalized Structure Equation Model (GSEM) structure with Tobit and order logit. Results reveal that people perceived more financial and economic stress and perceived poor satisfaction with the government’s role in fighting the pandemic. Regression analyses confirmed that least economic stress, good perceived governance, and high level of income are negatively associated with financial stress and positively relate to happiness and life satisfaction. Moreover, a significant relationship exists between the mediator (financial stress) and SWB. Our results suggest government bodies should encourage investment for business start-ups. This will not only reduce unemployment and economic and financial stress but also expand the size of the economy, which leads to achieving the wellbeing of people.