Correlation of Regional Gross Domestic Product with Happiness Index in Each Province in Indonesia

International Journal of Economics and Management Studies

© 2024 by SSRG - IJEMS Journal

Volume 11 Issue 3

Year of Publication : 2024

Authors : Jabal Tarik Ibrahim, Fithri Mufriantie, Nur Ocvanny Amir

10.14445/23939125/IJEMS-V11I3P101

How to Cite?

Jabal Tarik Ibrahim, Fithri Mufriantie, Nur Ocvanny Amir, "Correlation of Regional Gross Domestic Product with Happiness Index in Each Province in Indonesia," SSRG International Journal of Economics and Management Studies, vol. 11,  no. 3, pp. 1-5, 2024. Crossref, https://doi.org/10.14445/23939125/IJEMS-V11I3P101

Abstract:

This study seeks to investigate the relationship between regional gross domestic product (GDP) and the happiness index across provinces. Employing a quantitative descriptive and inferential approach, the research utilizes happiness survey data and Gross Domestic Product (GDP) from the Central Statistics Agency (BPS) of the Republic of Indonesia. BPS released national and provincial happiness index data in 2014, 2017, and 2021, while GDP figures for each province are based on the years 2014, 2017, and 2021. Initial research analysis involved the use of graphs/diagrams, and further analysis tested the correlation between GDP and the happiness index by employing the Pearson correlation.
The data analysis for the happiness index and the regional gross domestic product (GDP) of Indonesian provinces in 2014 and 2017 reveals a lack of significant correlation between these two variables. This suggests that GDP does not directly lead to an increase or decrease in the happiness of a province's population. However, in 2021, there was a somewhat notable connection, as the rise in GDP had a discernible impact on the decrease in the happiness index. It is evident that an increase in the regional gross domestic product of a province does not necessarily result in an elevation of the happiness index among its population.

Keywords:

Gross Domestic Product, Happiness Index, Correlation.

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