DO HUMAN DEVELOPMENT, COMPETITIVE ADVANTAGE, AND HAPPINESS HELP DESCRIBE REGIONAL INCOME

The study investigates the effect of human development, competitive advantage, and happiness on regional income. By using panel data from 34 provinces in Indonesia, and by using path analysis, the study concluded that, first, human development, and happiness have an effect on competitive advantage, and it shows that human development has a dominant effect on competitive advantage. Second, human development, happiness, and competitive advantage have an effect on regional income, and competitive advantage can be an intervening variable of the effect of human development and happiness on regional income. It is suggested that in order to increase regional income, human development is mandatory. The implication of the study is that the sustainability of human development should be as a main priority to develop all the regions. It seems that the study of the human development will always as an interesting and never ending topic for discussing.