Can Revenue and Human Development Promote Happiness: Study on Provinces in Indonesia

Abstract

This study seeks to see the relationship between the human development index (HDI) and gross regional domestic product (GRDP) variables on the happiness of economic growth data for provinces in Indonesia. The method used in this research is regression and path analysis. This study proves that happiness is not caused by the income (GRDP) of a region but rather significantly by one of the dimensions of HDI, namely the education dimension. The relationship through the variable between using path analysis through the indirect effect of the GRDP intermediary also significantly affects the education dimension. About 60% of the variable quality of education plays a role in happiness. If the effect is through an intermediary variable, the real influence of the variable quality of education on happiness is 65%. Other variables such as health and economy, directly or indirectly, do not significantly affect the level of happiness.JEL Classification: I3, E5, R10How to Cite:Rizal, S., & Fitrianto, A. (2021). Can Revenue and Human Development Promote Happiness: Study on Provinces in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 113-128. https://doi.org/10.15408/sjie.v10i1.17600.