IMPACT OF SOCIAL MEDIA ON FINANCIAL SATISFACTION IN LOWER-MIDDLE-INCOME COUNTRIES

Abstract

This study empirically examines the impact of social media usage on the financial satisfaction of individuals in lower-middle-income economies. It also explores the demographic variations in this impact through heterogeneity analysis. For the empirical analysis, the study focuses on 18 countries classified as lower-middle-income by the World Bank, using data from the 7th wave of the World Values Survey. The Ordinary Least Squares (OLS) estimates reveal that social media users report lower financial satisfaction compared to non-users. Gender-wise, the effect is insignificant for females but significantly negative for males, indicating that men’s financial satisfaction is more adversely affected by social media use. Regionally, the relationship is insignificant in urban areas but significantly negative in rural areas, highlighting potential disparities in access or content relevance. Notably, the impact of social media is more pronounced among male users compared to rural users. This research offers critical insights for policymakers to devise evidence-based strategies, including regulations, digital  literacy programs, and mental health interventions tailored to these populations.