Abstract
This study aims to examine the effect of macroeconomic factors: gross domestic product, inflation, money circulation, population, poverty, human development index (HDI), labor force, productivity, and labor costs toward the achievement of Indonesian people's happiness index in Islamic perspective. It is believed that the achievement of community happiness is closely related to the success of economic development by a country. The design of this research is descriptive research design with quantitative approach to generate in-depth information from secondary data (period 2004-2014) that obtained from Bank Indonesia, Central Bureau of Statistics (BPS), International Financial Statistic (IFS), CIA FACT Book. Time period is selected to be observed with the latest range of time range. Processing and analysis of this research is done by using E-views software. The result of the research indicates that the macroeconomic variables before the applied of sharia compliance have not influenced overall toward index of happiness of Indonesian society. However, by given the value of sharia compliance (tetha) to each variable, the results show that almost of macroeconomic variables have significant effects on the index of happiness of Indonesian society.
Highlights
Economics development is an important part of national development in Indonesia
From the above equation models, it can be concluded that the results show a negative correlation between Gross Domestic Product (GDP), Population, Poverty rate, Human Development Index, Productivity, and Minimum Wage to the Happiness Index, where are significant for GDP, Poverty, and Productivity
Inflation, Money Supply, and Labor have a positive relationship to the Happiness Index but insignificant
Summary
Economics development is an important part of national development in Indonesia. One of economics development those propose of this country is to improve the standard of living and quality of life (Subandi, 2011). The increase on per capita income will have an impact for the betterment of society, such as through an increase in education and health. Todaro et al (2004) says that economics success of a certain country be evidenced by three basic values: first, development of social capability to meet their basic needs like raising availability and enlargement of distribution of various goods of basic living needs like food, clothing, housing, health and security protection; second, enhancement of society self esteem as human being through enhancement of living standard such as like the increase of income, covering the addition of availability of job opportunity, improvement of quality of education and to enhance the interest for cultural and humanitarian values; and third, social capability improvement in freedom of slavery by enlarging economic and social alternatives for every individual and generally for the nation
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