The Nexus between Gross Domestic Product and Prosperity Index in Sri Lanka 2014-2016

Abstract

Gross domestic product (GDP) is a basic measure of the economic performance of a country. It is the market value of all final goods and services produced in the given year. Prosperity index is a composite indicator that measures and compares the level of prosperity of the country and its provinces. It is a multi-dimensional indicator about country or provinces. As a developing country Sri Lanka 's overall prosperity index was 0.864 in 2015. The prosperity index is categorized into three sub categories as Economic and Business Climate, Well-being of the people and Socio-Economic Infrastructure. All the sub categories have equal weights. Not necessary to talk about the relationship between Economy and Business Climate and economic performance. This paper investigates the relationship between the Gross Domestic Product and well-being of the people and Socio-Economic infrastructure, Sri Lanka 20142016. The data was collected through the Reports of Central Bank of Sri Lanka 20142016. Under the hypothesis, the Spearman's correlation coefficient provides that unemployment rate is not significantly related with gross domestic product and the well-being of the people sub-index, not only that but also there is no significant positive or negative relationship between GDP and well-being of the people sub index. As well as there is no significant positive relationship between GDP and Socio-Economic infrastructure sub-index. Therefore, Sri Lanka a experience that there is no influence in Economic performance and human well-being and socio-economic infrastructure