Analysis of the Relationship between Economic Development and Happiness Index in Indonesia

Abstract

This study aims to analyze the relationship between economic development and the happiness index in Indonesia. The object of this research is 34 provinces in Indonesia in 2014, 2017 and 2021. The analysis method used is panel data regression analysis method with the best model used is the Fixed Effect Model. The results of this study indicate that the economic growth variable has a positive and insignificant effect on the Happiness Index. Inequality, Health, and Environmental Quality Index variables have a significant negative effect on the Happiness Index. The Education variable has a significant positive effect on the Happiness Index. Suggestions given in this study are that the central government and the central government must work together for poverty alleviation, human development, improving access to education and health and evaluating environmental policies so that later it will increase happiness and welfare in society.