Approaches to Measurement of Well-being: Case of the Republic of Moldova

Abstract

The development strategy of a modern state is oriented towards ensuring economic growth, increasing the well-being of citizens and reducing the level of poverty. The COVID-19 pandemic had a negative impact on national economies, including the economy of the Republic of Moldova. That is why, the assessment of well-being, identify impact factors, the elaboration of recommendations for increasing well-being become current. Contemporary approaches to quantifying well-being focus on both the economic and social spheres. In this study are identified the weaknesses and strengths of the well-being indices, the dynamics of two composite welfare indices have been analyzed. In the research process, the influence of different factors was identified and their influence on the well-being of citizens and living standards was estimated. Applying the method of correlation and regression analysis, and using the software Eviews 9 were developed two multifactorial linear regression models: a model of the well-being and a model of living standard of population of the Republic of Moldova. Based on the analysis of the pillars of the Legatum Prosperity Index and the components of the Social Progress Index, priority sectors were identified, such as: health care, education, economic quality, enterprise conditions, environmental quality. At present, it is necessary to promote strategies to ensure sustainable economic growth, which will inevitably lead to an increase in the well-being of the local population.