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The Happiness Index as a New and Complementary Measurement of Development as Applied to Each Province of Indonesia

Author

Listed:
  • Nafik Umurul Hadi

    (Faculty of Economics and Business, Brawijaya University, Veteran Street, 65415, Malang East Java, Indonesia,)

  • Candra Fajri Ananda

    (Faculty of Economics and Business, Brawijaya University, Veteran Street, 65415, Malang East Java, Indonesia,)

  • Pudjiharjo Pudjiharjo

    (Faculty of Economics and Business, Brawijaya University, Veteran Street, 65415, Malang East Java, Indonesia,)

  • Moh. Khusaini

    (Faculty of Economics and Business, Brawijaya University, Veteran Street, 65415, Malang East Java, Indonesia.)

Abstract

Efforts of the governments of various states to raise the level of social welfare by means of developmental mechanisms, one of which is the Happiness Index (HI) as a new and complementary measurement of the outcomes of development, always experiences policy transformation. Based on the Multidimensional Scaling (MDS) method of analysis, at provincial level (of all 33 provinces of Indonesia) 4 grouping of HI, according to Economic and non-Economic elements. Based on the results of the study, each area needs to use the HI measurement as one of the indicators for quantifying the outcomes of development in the area. The findings also revealed the importance of considering social aspects as determinants of community happiness. Consequently the central and regional governments need to consider the inclusion of HI as one of the accompaniments to the economic indicators especially in the current era of decentralisation.

Suggested Citation

  • Nafik Umurul Hadi & Candra Fajri Ananda & Pudjiharjo Pudjiharjo & Moh. Khusaini, 2018. "The Happiness Index as a New and Complementary Measurement of Development as Applied to Each Province of Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 214-221.
    • Handle: RePEc:eco:journ1:2018-04-27
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    More about this item

    Keywords

    Development Indicators; Happiness Index; Economic and Non-economic.;
    All these keywords.

    JEL classification:

    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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