This study aims to examine the mediating role of institutional trust (IT) between perceived corruption and subjective well-being (SWB) using data from 1566 households in a developing country. It deploys ordinary least square (OLS) and an ordered logit model within the generalized structural equation model. Results show that individuals who perceived no corruption in a country report more IT and higher levels of SWB. Furthermore, the direct effects of good governance, perceived IT, and the absence of corruption on SWB is also positive. Moreover, satisfaction with hospital services also improves happiness and life satisfaction levels. This study improves and validates how corruption is assessed to support future measures that reduce its harmful effects. Moreover, the masses must have widespread awareness about the critical nature of corruption and IT relative to well-being. This study also highlights the need to develop strong institutions to improve trust and minimize corruption.

The issue of virtue and happiness holds a crucial position in both Chinese traditional and Western philosophical systems, and to this day, it remains a hot topic of concern and discussion. The "Huainanzi" was written during the early Western Han Dynasty, mainly based on Taoist thoughts, incorporating various schools of thought to form its distinct theoretical system. It can be seen as a culmination of the traditional Chinese pre-Qin perspective on "virtue and happiness" holding significant research value. "Huainanzi" firmly believes that the ideal situation between virtue and happiness is and must be a consistent relationship.