DOES AGRICULTURAL GROSS DOMESTIC PRODUCT AFFECT HAPPINESS? A STUDY IN INDONESIA

Abstract

National development in every country aims to create people's welfare. Agriculture plays an important role in improving the economic welfare of the Indonesian population. Research on the effect of agriculture on the Indonesians economic welfare has been widely carried out, while the effect of agriculture on the Indonesians happiness was still limited. This research aims to analyze the effect of GDP, agricultural GDP, and livestock GDP on Indonesians happiness. The study was conducted in January-April 2021. A regression model was applied with the dependent factor of the Happiness Index and independent factors of GDP, agricultural GDP, and livestock GDP of the Indonesians in 34 provinces in 2014 and 2017. GDP had no significant effect on the Indonesians happiness. GDP could be considered as one of the happiness components and should be combined with other indicators. Agricultural GDP had no significant effect on the Indonesians happiness. Agriculture was a producer of staple foods (basic human needs). When basic needs have been met and income has increased, the happiness was strongly influenced by non-material factors. Livestock GDP had no significant effect on the Indonesians happiness. Livestock was a producer of food sources of animal protein. For most Indonesians, animal food was still considered luxury goods with the characteristic that their expenditure for animal food was still very low