Bukti Korespondensi Labor force and economic growah based olt demogrsphic pr€ssures, happiness, and human developmcnt: Empirica,fr;m Romania

Labor force and economic growah based olt demogrsphic pr€ssures, happiness, and human developmcnt:

Empirica,fr;m

_Romania

Dr. Adi Wijayar', Tanasc Tascnle, ph.D2, Dio Caisar Darma, M.Sir,Assce_prcl DLJa(i ^KasuDlar l"Senior

[-ecturer, f)epartrnent ofEconomics, Faqulty of l]conomics aId llusiness,

,.

^ Mulawarman Universily. TNDONI-SlA. _{E_mail:} adi.wijaya(rr_fct.*.uf .o".ia

-Asslst. prolessor. Faculty of Lau and Adminiqrrative _Sciences, Ovidils University ofConstaola,

_

RUMANLA..E_mail:office@pluscommuicarioD.eu

'-Rescarchcr, Drpanmcnr ofMalagement, Scliolah Tinggi llfru Ekonomi Samarinda, INDONFISIA. _{E-rnail :} diocaisar@stiesanr.ac.id

+Ass{,e-Jrotbssor

ltli!!!.t, Faculty o[Busincss and

M#e;;i;;iI;;,.iri

Teknologi Mara (Sarawak branch), MALAyStA. E_maiL jati@uitm.cdu.my

This. papcr

o#o-examines

the

effect, olT$l"t;raphic

pressure, happiness. and

a

human deveropmenr index on rabor force and cconomic

e,;;ih ir'R";.ii" ii-i t1l p.;r"l'ior:-iiii"dl By-lusing

path analysis, we aeed-+e{9y9.l9pgddivid€-iHe trvo moaets,_9ne_94p19gi!g_{dir"ct effect! and the other indirect effects.

Mionsi,_.ifugqdqls

fcd

^tlme

f.tes da *r+""*"*A&;;sHh"dr{r-bt _{*.d_*}

TtrTiTlofr-

^I

^hc

a*i€le_pqpsldocumcnrs

six

irnportanr

findingi,,

inutuding rhat rhc

::j:Tl":,.-:ryqr"gnrc.pressure.

happiness, and !!qhuman development

indix

suppons economic g:"_Y:l^-r]qi,j,:3r,ly-. Moleovcr, lhs_human dcvclopmcnr indcx and tabor forcc atso

play

an ,nporrant and srsnilrcant rolc in cconomi

growthd$ri{€antlr,

_but the hurnan dcvclopmcnt indcx is the single mosr striking variable frorn_pq1_rle hiypot)resis tes6--it is shou,n

r+everthat

thjge

!4gQ4efEer-also has a significant eflect

on

economic

gro*rl, it rorgn=Etabor

force.

fheis

evidence offers insighrs lo srakehotdcrs that

rtrerc-nced+*J+ecr-€,il;;rirG;;bs;h$Jil

*em

demographic pressure and happiness ,o tt

"t

^tlr"y

"u, ^pluf . iJ"i .ri-1, ri*,r,"

^success

of

{he population's \.\ elfare.

trygll

^{feree; eeeoemie}

Fe.i+hee9!9mfs-qeJ9!9m9!]!, Dslh anahsis. welfare. Romania.

INl RoDuct roN

Demographic changcs are part

of

aa-intense policjpg5r pursued

by

various countries. These chanqes Brobl€fi$have a broad scope because they are related to corlplex problenrs including the labor markct, pcnsion systcmg.

cultur.l

cohesion, gendcr equdity

in

the-sociat ond economic context!, identity, quality

of life,

public expenditure performance, regional cohesion, public interest services, and balanced regional development, bqlofl€ed_This section so€k6_{o-highlights evidencc

eoripfeMrr--based on

the-<liversity

of

discussions_4qgl, -se_it_is_aeeesmry_+e

focusjgg on regiondl tr€ndr, pattems, _and projects (B0chs

&

^{Koch, 20r9r} GrreBen et ar,, 2016;

Mester, 20 I 7).

Thgie potenriol for dcmoqraohic chancc has been dcmonsrratcd in a numbsr

of

cases in eeve$l

"ourtri"r.

Europe was used to

@unt]

happin€sE Cota frenr

Ec{€f€r.{o-calculate the trade-off between inflation and unemployrnent, findioq lhat there is no 6igniticant diflbrence between rich anrl poor. This e{.eeure+explains how increasirs real incomes

ovcr the

dccadcs hclped East Gcrmans lead q{atifuinq

ljvcs. e

Sc_f{c"t_U&_+hrc$gh_{h,

@ugh

inercer:ng real ineemee

erer

the dee^dee,

I!

sdditionlre.fiails'

the calculation ofmajor changes in litb satisfaction has srso been observed iD post-transition Russia and can

be partly

explaiued

by_irygg$g real

incomc

with

soms varial.ion in thc obscrvations. By considcring thc dcmand for rcdistribution bctwccn thc US and European regions rhrough the intensity ofincome inequality on individual welfare, the discussion

of

validity

with

the wclfare question scems subjcctive_{duc

to

thc use

of

real_tinc welfarc rueasures and experience sampling, So

fari

the prcmotion

of

the concept

ol

a national welfare index to complcment cconomic rccovery. with govemmcnt strategies ond programs in s flumber ofcountriesr* is an irnportsnr concem (Frijtcrs ct al., 2006; Kahneman

&

Krueger, 2006).

With respcct to Edrph{}i+h€-€€oiom}€+Romania. ils economy is morc dependent on sewices.

which accounts

for -{t-55% of GDp,

and the rest

is

the industrial and aqrieultural sectors lccounting for 35%

snd

157"

of

CDp-

resoectivel@.

_tt

should bc noted-4!g132% ofrhc populatiofl work in rhc agdcultural and production sccrors (e.g.

wine estates)r which makes €o+h6tsthls9 sectorgie the mainstay of the_{g9!e!!ys€€+€r. With the expansion

of

growth pattems basod on primary sectoN, generally speskiner {he_coNumption

of

rhe?epulo{i€n-in a country is morc inclined tow{rds food needs (Thc Olobal Econorny, 2020).

For various interrelated reasons. demosraphic ^pressures (Dp), the happiness index

(HII

and-.lLhg

human devslopment index

(HDI)

indicators are closcly related

to

the labor force

(LF)

_and cconomic growth.

Thie

eafl be Frered

Ly rorieu-

Lrtereleted _ree-ene,

A

country _{nccds to} consider the

comfo

aspect that comes from its own demographics. and in order for, residents to

live

comfortabll,. eEuvironmental conditions and situations for occupfDg an area are dte most

domhant areas of

concem@. _If

_{rcsidents live} comforlably.

tHapp€ie-they will

leel happy carrying out economic activitie$ (production. distribution, and

consumption), so that sustainable hurnan resource devclopmcnt can be crcated. Thc social capital

of

the population

is

obtaired

fircugh

imprcvemerts

in

the fields

of

education, health, and adequate inftastructure. That way, they can also work and hcrease productivity in various sectors

ofthc

econorny. The population, whjgbo is absorbcd in all sccton, bccomes an expansivo ddving torcc

expeneirelyif it

is balanced with equitable cconomic growth. Uased on this phenomenon,

*oB+ii-o*i€loiwe

intend in this paper to discuss the direct and indirect relationshipd between DP, HI, and HDI on LF and economic growth in Romania.

CONCEPTUAL AND

THEORETICAL

ARGUMENTS Demogmphic presiures (Dp)

DP's capacity for nature is a multifaceted probtem _as well as e maior

orob

iC develooment

of

a recion. and thus needs JHx,ov€re8€_needs to be considered very broadly.

This

i.

^a mqier preblem in the Ceme^raph:e develepment efthe regien, Dp not only complicates the problem ofincome inequality and poverty but also has a negative impact on the development procees (DidcDka ct al., 2017; Carvalho et al., 2016).

The most important features of the demogaphics

of

a region are aging and population decline.

All

countries, especially those ftom Europe, are facing this problem,

with

different intensities fiom onc rcgion to another. ln thc last fcw dccadcs, the firndamcntal changc in thc demographic

situation

in

the European Union (such as Ronunia) _{has been} a transition period 6s the older population is densely packed and tl.re growth rate of tlre youlg population gradually slows down, Althoughr thcrc wss an incrcasc

in

population

in thc llu

as

a wholc in 20t1.r

As_.{oFthc population

of

countries such as Bulgaria, Germ$ny, Lstvia, Lithuania, Hungary, portugal, snd Romauia hosdecreased (Serban. 2012).

llqDpillcss

If

a sense

of

genuine happiness is bssed on one,s comparutive situation, then_&-*ho

policyltgt

sddlosses

it

must have a logical impact and nothing can be done to improve overall well-being.

tioni, gBfforts to increase

Ssir

income

that

ends

un

bcing

tared morc

can lead

to

reduced hsppiness, Likewiso.

for

tbe environment, these factors

of

economic extemalities are clorely related to taxation

in

terms

of

cnsuring

full

fiocial conditions againet thc costs of agency activitics and are c,rcfulry calculated

for

rhe benelit

of

the individual. For the traditionar income futrction. the estimated happines' funotion oan be uscd at a compariron ofwelfare gains and losscs (related to variors factoff). Thig sort

ofthing

should be used to estimate the income balance from.Sgg divorcs, to imply the slope of the

"Philip

Curve,', and to suggest thar income

*€iFinequality

has a signific0ntly negative effect ofl the happiress inequality ofpeoBle in Eurcpe (BejakoviC

&

Mmjavac, 201E),

he rapid development

of

technology and the rapid scientific development

of

^people,s ability

to

balance work ond fsmily

life

⁽ⁱⁿ oth€r words. oualitv

of lifel

crur be analyzed by considering a ^person,s

job

shonage or uncrnploymert through the lcns of mental health a,,d well-bcing.

[t

sceins clcar that happiness i4o one's work-life can cxtend to oneself, others, and

life

outside of

wor[. r+en

S0everol studies-hgyllhoMlhEtr _{there is a strcrg} corelation between job _and life satistbction in 34 countries, llowcvcr., there is still rnush debate about thc many clnpirical findings ofcausality

and the role of other t'actors such as 6utHf,t*he_rfipodonoe_€fuersonality traits, mental health, and extraversion. In this connection, the determinatioD of satisfaction in the world of work and leisure rcllccts oncrs happincss (parasuraman

&

Sirrmcft,20Ol).

Humsn development (HD)

Since 1990, the basic concept

ofHD

was

d€veloped

to HDI to enlarge the govemment,s rolc in making development decisions and planning. In the past, this measure was also designed as an altemative use

of

GDp per

capita.ltei.$ffi

symbolizea human prosperity.

Ur*il-r€ryilhaf-HDl

has achievcd increased acceDtance. larqelv bccause

it

*€B€ndsu6__€u€s€6{._gD[ includes a numbet of indicaton other than income, namely education and health, to keep it _{simple and easy} to calculate (Lind, 2010; Taner et al., 201 1).

@Muchofthccriticismrelatcstolhqhighcorrclation

between the compon€n$ oi{ho HDI, the functional folm of$€_HDI (ircluding _the nomalization ofconponont indicators, aggregation, anrl multiplication), or problems related to their weighting, The combination of indicators in this method has inctuded variablesJu! inte an index that tends

to

bc subjcctivo and lacks theorctical validity. This

occun

becausc

thc

problcm

lics in

thc equalization

of

the absolute value

of

each componeflt, so that

it

can havc an effect on HDI achievement' Extre,re _scores in some cases in cerlain countries that are included in the index and thereforc influcnce overall

HDI

scorcs can

;

rcl€e+ed_{idJr}flu€n€e+IDi_6€er€6iresulting

in

a change

in mnkilg

order. One criticism

of {Jn{il-ao*.r+he-HDl is fiat it

has been has-$€€n ed*ieized-fer-considering attaching equal wcights to-*ho sclccted compolcnts that have. high

lelels of

human development--€o$psnoc{&, causing th€se components

to

coffelate

with

the composite

index.jgEllg

en+statistical problemslq ariseiis€Fthq+ the tefercnces provided do not provide an accurate and comprchensive rangc (Atnaluddin ct al., 20l g; Latuconsina, 2017).

Labor _force

(LF)

Many previous crnpirical _stur.ries have concentrated on the role ofhuman capital investment _and its rclationship with r,,oris+ion6-€u€h-e.-production and cconomic growth, This is demons(ralcd by long-terff sustainabt€ glowth snd developmcnt across countries, ss

it

is lorgcly driven by thc productivity ofgrowth _itself (Amir et 01., 20lS).

The perspectiye

of

the worklbrce anr! the industr.ial sector plays an

impo

ant role

in Llhg

households _economy.

The

neo-classical fiamework

is rhe first rrea to

incrude gender in

employrcnt, !l_i!_aA

^basic model that does

not

cballcnge $,itles{..{ha{€n€ling:theorctical foundations and

iris

simpry _a matter ofdcaling _witrr the accurate analysis ofthe observed reariry.

From the theory

of

supply and demand-€€en€nry, labor shows that economic activity is most rupported

and

attractivc barcd

ou ovcrall

comp€Dsation,

Job

search

thcory

ha$

bcpn

in devclopment since thc l9d0s. Basice[y, this theory prcdicts thc bchavior

ofjob

scckcrs who are unemployed and are faced

with

the problem

of

the cost

of living

to obtaifl information about porsible wages for them (Guarino et al., 2006).

Economlc growth (EG)

The problems

of

EC have gcneratcd dcb&tc about the driving forces that dctermine cconomic

gowth

and dcvelopment.

lf EG is a dylamic

process, thsn there are facrors

in

the same proportiofl _ro prcdict furure strength. classical economists see the detemrinant

ofEG

as driven by investinent ard an increase in protluction capacity. In tlgie 20rh century, neo_classical economist$

idefltified three causes for the rise a,l(t fall

of

a country's economy, namely capital, labor. and growth itself. Thifl is suflicient to cxplain thc perfoflnancc

ofEG

in capitalist countrics, Tho

norc

rapid rlre use ofthese factors, the greater the EG (pietali 2014; Cascio

&

Lewjs, 2012).

EG theory explicitly addresses equilibrium dynamics and tries to answer acceptable questions about the tlpes ofuse ofthe available factqrs ofproduction, thus providing sustainability for ths

increase in real GDp per capita in the long run. The level of EG can be achieved with the greatest possible _increase through

efficiently

and effsctivelv used th€_production

factors*rd

os€ifi+ty{ad-os€€tidy.

The biggcst wcakncss of the nco-crassical

Dc

thcory is the failurc to respond to a number ofproblems that occur due to technological change. As an illustration, at present iI seems as

if it

is collapsing, thus making the

wo*force

more productive (Cvetaoovii et al., 201l; Soyer et al., 2020).

METHODOLOGY

Data and scale

This oaoer a*isl,e-is based on a secondary data approach (time series). The data

@is

lbcused on

devslopments in DP, Ht, HDI, LF, and EC with Romania as

rh",r

object

mnge{*.M.

Data g19is collected through

Ss

anDual report!.

In

atirlition, the data arc also $upported by previous empirical studies ar s

ee'fariee-

efthe fHrdintc efthie artiele, A ouantitative approach was used

to orocess the data.

@qnaatitrtiv+app-eaeh,

Table

I

isan

explanation of cach variable componcnt.

Statlstiaal models and mathematical methods in dynamics

for

making

policy

_and prcdicting _thc

economic theory are very diverse. Economic cffccts

of

an analysis

of

the intcrdctions

of

cconomic acton vary widely, 0o it is r€+necessary to determine whether or not the theory used supports the strdy findings €Fd€t{prasolov, _{20 I} 6).

Specillc.tlon _atld empirlcal _model

Thc analytical model that we use{ to answer the purposa of this ^pap€r 6d€l8_wais path analysis.

This technique is aimed at analyzing the pattem of relstionships between variables

in

order to determine the

dired or

indirect eflbct based on the data obttined from the analysis. The path analysis model plsys an important role

ifl

testing how much influence is _shown by the parh cocfficient

of

the oausal

dationship

between drc variables used directly and indircctly (Allcn, 2017).

conelation

and

regre*ion

_anarysis

is

the basis

for

carcurating the path

coef'cient. In

its pres.ntationr we used the Stsristical product and Serviee Solution (SPSS)

44!1,

The epecific steps gaeglle thmugh the following two structures:

LFi( = Ilr ^DPir + _B, Ht1 + [3 HDII + e1

(t)

Where: LF iB the Labor Force, pl Dp is the value

ofthe

influerce ofDemo$aphic pressffes on Labor Forco, ^p2

HI

is thc value of the offoot ofthe Happinors Indox on Labor Force, p, HDI is tho value of the lnfluence of the Humsn Developmcnt Index otr Labor Force, e is the confoun<llng factor in the ,if3t equation, and _h as a

tific

lag.

ECir = 0r ^DP1 + 0r ^HIrr + _0a HD[r _{+ 0r} LFrr +

err _e)

Wherer EG is Ecotromic Growft, p+ Dp is

fte

value

of6e

influence of Demographic ^pressures on Economlc

Growtt,

p5

HI is

the value

of

the effcct

of

the Happiners

Ildcx

on Economic Growth, p0

HDI

is thc valuc

of

the influcncc

of

ths Human Development lndex on Ecolromic

Growh,

^p7

LF is

the value

of

the influence

of Labor

Force

on

Economic Growth,

e

are confounding factors in the second equadon, and _ir as a tim€ lag.

l'or

thc completcness

of

hypothcsis tcsting, thc calculation

of

the inrervcning variables can be

done using the Sobel test procedure because

of

the limitations

of

SpSS (Wilayanti

&

Danna.

2019). This test is done by testirg the strengrh of the indirect effect ofthe exogenous variable (X) on tho endogenous variable

(y)

through the intervenitlg yariable (Z).

RDSULT Dcscrlptlvc statlstlcs result

Table 2 displays a sunmary statistical descriptiol based on regression estimates for the variables DP,

HI,

_{HDI, LF,} and EG. The mean, standard enor, standard deviation, skewness, and curve values

ofthc

five variablcs vary widcly. As can be seen. LF has the higAest mean (54.5914): EG

his is becausc

LF

is a variable that has the highest unit value amonggll othcr variablcs.

has the hiehest standard error (0.47g99). standard deviation 0.26728). _skewress

a.877r

and

Krrto.ir

^(3.918).

€4'5r+4)--+yhite-Fc-+ttF

r{^nderd

eror

^(0,1?39

Jin/i?er Own

/Vore. 'lev€l of6ig. 0,05 and "level ofrig, 0,10

Table 3 reports the Pearsor co,,elu'ions for the

v'riable,

(Dp, HI,

HDl,

and LF) i,cluded in our model, There is a conelation betw€en the exogenous variables rower than 0.6. which rndicat€s that there

h

no mutticollinesrity

in

the path analyris model. This re&rs

to

the fact that rhe varianco against the

hflation

factor

in alr

e,timstion modols iB bcrow the murticoltirearity thrcshold, so

it

is generally accepted that

ir is l0

^(Sekaran

&

Bougie, 2010; Brlhrnana et al., 2020), Meanwhile, the mahix shows a signi{icent co[glation between exogelous variables and endogenous variables,

Regrcarion

resulb

Tsbl€ 4 shows thst the feasibility ofthis study moder

ir

suitabre for use becauso the acquirition

of

conelatioo (R) reaches 84.7%

witl

a coellicient of detemimtion of 7 I .i%,

uee*rfiilqllcee*e

structurc

l,

the three relationships ofDP, Hl, and HDI are positive, where HDI is thc most dominant variable in defermining the LF performaflco

of

3,33%, Panially,

the

thrge reletionships betwecn oxogonous yariablos and

e

dogcnous varlables Bre cqually siglifioant.

-ly'oler

Lf

(cndogenous)

/Vore. EC (endogenous)

Meanwhile, fiom shucture 2, LF acts as an exogenous factor linking its influence to EG. With the 5% probability limit, the values

ofR

^(97.5Vo) and R2 (95,1o/o) _are very high, so the study model is dcereqfeasible+e.uce.

T.€

yari^ble. out':de ef

DI,

HI!

IhIr

^aad EF to

ge

^-€

1,9!i

(etardaC

€ne#roF{hi8-sode+

_,Ww€ highlighrJEgrnlhls_Egde! that there is a negarive relationship between DP and GP so that it can reduce Gp to g,56g%.

At

the estimates, there are 2 variables

(IIDI

and LF) that have a significant effect on EG,

wh

e Dp and HI have no signifrcant effect on EG. As fluther information, HDI is the most dominant variable in detemining EG performance,;;

es-its

role can in$ease EG teulreaeF9.506% (see Table 5).

Figurc

l:

Complete relationship ofregression

Path analysis based on the rwo previous sl.rucluml relationships is based on significance values.

and as a resultse

{hiFit

calt be brokeu down into componelts and structural (causal) effects}

which are stated in the path diagam. Figure I hoorompletely outlineid the s€ven hypotheses, Path analysis rcsults

Hypothesis testing from this session

is$cd

to complement and answer un0n6wered hypothesed (points 8, 9, and

l0). ef+ethr€e-h5l.erh€ sr, i- -erfeule- fte hdirse

able 5 ^presents thc-eala erbn-oFthe Sobel Lest cslculation, bv whichso we conclude th0t HDI has a significanr cffeot on EG through

LF

bccausc tho p-v8lue is S.g44.

frr

abov6 the

statisti

ie

r.qtirfln€$s{'F

1,96), meaninqee that

HDI is

& variabto that can mediote the relationship between

LF

and EG.

€F+he-t e-orheHtrieblefnornelfDp

_and

_HI,

however. they_do not directly hsvc

I

significant effect on EG through LF.

ofsig,0.05

/Vola, 'levcl sig. 1.96

our

results show lti€-9re..arFahat the rerationship

wilh

the rargest path coeflicieni

in

the Iiret Jnrirt,er Ou

Note:'leycl

;:T:,,J:J::::,"I::,T1H :::: tr":;"J

relationship between DP and EG which

ir

-g.56g. Broadly _speaking the indirect effect also

lllpotheier F

^I

^$qletd

^{Eflect sic. Dtciriilln}

HI _{2.. 69 2.4}

,041 SuJrDorted

0ll)

.1. 3.31.2 n0t

H4 .l$.r .8.568 tV, l

H L. t.:-18

ltil

H 9.50(r 9.506 .028 _{I SupnQrted}

lSlpported

1.: .133"

-

Not suDDoder

I ,-__l

^l.r

^|.11

^{.844' suDtorted}

shows different results from the previous one. The very wide gap analysis path is shown by the

indircct

relationship between

I{DI

and

EG

through

LF of ll.l79.

Meanwhile.

the

lowesr coc(ficienr is from Dp to EG through LF (sec Tablc 7).

DISCUSSION

GDP is achlally good enough to explain the d,.namics of social welfare and economic welfare.

I

^Both measures are defined as condirions for any country,s net growth. When examined in_-depth,

I

the $ocial welf'are in question _{is the} population who has worked in various business fields and the indicators

of

ccouomic welfare ernphasize the ag$egate output

of

a certain period (Esrnail

&

sh

i,2018).

Investigating the relationship between human developmelt. economic growth, and employment

is

hvo-prongcd:

for

examole.= Ae-ett-sBphasis-Jhe progress

of

economic growth

for

human devclopment, so that unemployment and povedy can decrease, productivc age (15 years _and over) is considered the ideal criterion to start a basic

job

and. conversely, this potential

will

be wasted

if

economic groMh _{is on a} negative slope. There is a strong and positive relationship in several aspects,

!gg[-the

govemment needs

to

make efforts through spending (health _and education services) so that

it

can brcak thc circlc of social problems. Mcanwhile, the inflow

of

investment to carry out cconomic activitics plays an impodant role in their income dishibution association (Appiah, 201 g).

An

intemational project has analyz€d the value

of

^happiness of populations across countries in 2006. Happiness

is

an i,,tegral indicator that aims

to

compare

riving

standards

in

different countrie$.

The indicato$ in it lie in lifc

expcctancy, community

Iife

satisfactiol, and the etrvironment (attitude towards nature). The enyironmottal factor plays an impor.tant and very big role in detemining the Iaoking

ofa

coultry. At the begiDniog

ofits

appea{ance, namely in 2006

it

was known that Vanuatu was in first place with 6g.21 poinrs. Aftcr that, sincc 2009

and2(.ll,

Costa Rica canre in first with ?6.1 points and 64,0 polnts, re$peotlvely.

All

oountry leaderd agree on a number of factors (especially for crimatic conditions _{as a} bonus for their tenirory).

Mo$ of

lhe counrries located

in

North, Ocesnia, and South America ore

in

suotegie rcgional positions.

comtri€s with happy populations _arc mostly located on islands ond peninsulas. The low standard

of living for

their reBidents

is

sufficient bocsuse

th$c

statos can develop tourist dcEtinatiotr services (Yudina et al,, 2018).

CONCLUSION

ouguts (dir€ct effcct and indirect effcct)

th*<an

be concluded from our oath analvsis. Broadly speaking, we report that in stfucture

l,

DP, HI, and HDI havc a significant effect on Lp. From stfuctufe 2, it is precisely HDI and LF that havc a significart _effcct on EG_ We show l+ie-a+even_lhat

IIDI ir still

thc

mair

kcy that indirectly affects

Li'

against EG.

The first structure to discuss the rchtionship _between Dp, HI, HDI, and LF has been suppofied by prcvious studies. The relevance

ofthis

finding with what perovic

&

Golem (2010) and Azizi (2018) stated, highlightcd that therc was a significant offect

ol

thcse thrce variables on LF with

diffcrcflr

somplcs, objccts, {lnd analysis mndcls. Mcanwhile,

Cl0rk et

01. (2016),

Novid &

Sumarsono (2018), and DoEarl

& At,,tiz

(201?) conchded that

Dp, Hl, HDI

and

LF

have a significant effect on EG-r

efiounr!+haiFfindingslhg!

contradict rhe rcsults of this study. Dp and Ht actually have no signi{icant crrect on

ric,

while HDI and LF havc a significant ofl'cct on EC. Of the four hypotheses in the second structure. not all can be accepred.

Meanwhile' the three hypothe,es thst pr.8ent an indirect effect also presenf different empiric*r rerults from previous studies from Headey

&

Hodge (2009),

Li &

Shi (2019), and Kusuma et al (2019). They rcvcaled that Dp, HI. and HDI had an indirect impsct on EC through rhe role of LF.

Thus, the policy implications that we can provide through the rore of the Romanian government in eDsuring the safety ofevery _{citizen so that they can} trust to live with the cuncnt environmcntal conditions-ee-*r. Thc crcation

of

a conducivc climatc can give thern conlidcnce. That way, happiness

will

arise along

with

the revitalization

of

lhe education and health sectom

for

the productive workforce. The process ofhuman developmeot cannotjust bc created but needs to be supported

byjob

opportutrities so that they can improve the quality

oflife.

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