This paper aimed at determining the contribution of sectoral FDI on subjective wellbeing of developing countries. Considering a sample of 37 developing countries, studied from 2006 -2019. Result obtained using the ordinary least square and fractional logistic estimation technic reveal that sectoral FDI contribute positively and significantly to happiness with secondary and tertiary sector FDI performing the highest on happiness, the government should encourage economic policies to be oriented toward bringing in more FDI secondary and tertiary whose technology diffusion and employment opportunities will benefit the population. Again, a policy concerning wage payment according to your qualification level and skill should be adopted in the sense that employers in general (state and private individual) should consider remunerating employees with respect to their highest certificate.
Key words: Sectoral FDI, subjective wellbeing, OLS, Fractional logit, developing countries
