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RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND HUMAN DEVELOPMENT INDEX
Abstract
The quality of live is an interesting and important social topic but to measure the life quality is currently a complicated issue. Gross domestic product (GDP) per capita is a measure of a countrys economic output that accounts for population. It tells you how prosperous a country feels to each of its citizens. However, it is not a complete measure of economic welfare. The Human development index (HDI) was created with a goal to emphasize that not only economic growth but also people and their abilities could be the key criteria to evaluate the countrys development. The aim of this article is to help establish a correlation analysis of the interdependence between Gross domestic product per capita and The Human development index in Visegrad Group (Countries V4 Slovak Republic, Czech Republic, Hungary and Poland) and some countries of Balkans (Bulgaria, Romania, Slovenia, Croatia, Serbia). A correlation coefficient is a number that quantifies a type of correlation and dependence, meaning statistical relationships between two or more values in fundamental statistics. A high value, approaching +1.00, is a strong direct relationship, a low negative value, approaching -1.00, is a strong inverse relationship, and values near 0.00 indicate little if any relationship. Data were obtained from Eurostat and from United Nations Development Programme which prepares reports about human development for the period 2000 - 2015. The results showed some small regional differences. In the most of regions, the correlation was high over 0.9. In Bulgaria and Slovenia, the correlation is lower between 0.8-0.9. The lowest correlation was reached in Croatia 0.71. Despite the different views GDP per capita is an important indicator of economic welfare closely linked with The Human development index.
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