Stock market finance and gross national happiness: an institutional fit? Evidence from Bhutan

This paper studies the institutional fit and the appropriateness of neoclassical stock market institutions within the context of Buddhist informal institutions in the Himalayan Kingdom of Bhutan. This is particularly timely given the considerable media interest in the principles of Gross National Happiness (GNH) as an alternative series of measures relating to economic growth and development. Our findings reveal that while conventional development policy supporting stock market and banking system financial systems is not counter to the principles embodied in GNH the central government may be better in administering finance owing to a general apathy towards formal neoclassical institutions by the population owing to the dominance and pervasive strength of the Buddhist monastic traditions and culture in Bhutan