INFLUENCE OF LATVIAN GDP ON THE MAIN INDICATORS OF INHABITANT LIFE QUALITY
Journal Title: VADYBA - Year 2015, Vol 26, Issue 1
Abstract
The main indicator in the System of National Accounts is the Gross Domestic Product (GDP). However, GDP is not the direct characteristic of the welfare of the community. Nevertheless, there is an opinion that there should be positive correlation between GDP and social welfare: the larger is GDP, the higher is the life quality of the society. Indicators of economic welfare of the society in general are described by the total income. Such income makes the fundament for a certain life quality level. The most important and determinative one for life quality level is the GDP indicator per head of population. In the period of crisis 2008-2010, according to data available to Eurostat, Latvia was among the EU countries with the largest decrease of economics and population welfare. Austerity policy conducted by the Latvian government firstly aggravated the heavy condition of the majority of the population, and then, from 2011, started giving positive results. The World Bank, which forms annual rating of states in respect to gross national income per one person, according to the data of the year 2012, placed Latvia in the group of countries with large income. The high mean income itself is not the indicator of high level of living. The originality of the paper is that for the first time mathematical models for statistical data were used for analysis of how interdependence on GDP per one inhabitant of Latvia influences the main indicators of life level and quality. Object of the research: the main indicators, which influence the level and quality of life of the population in Latvia. Goal of the research –to analyze how GDP per one inhabitant in Latvia influences the main basic indicators of the population level of living. Methods of the research are – analysis of Latvian statistics data, mathematical modelling, correlation and regression analysis. For computation and further analysis statistical data about Latvia starting from the year 1995 were used in this work. All the regression models acquired by computations using statistical data are statistically important and quite well explain the significant shares of variance of the effective attributes. Analysis of regression equations showed that the largest direct influence of GDP per one inhabitant of Latvia is done on the mean annual income of equivalent consumer. Without crisis in economy the least influence of GDP is done on the level of employment. The mean annual income of the equivalent consumer directly and largely depends on the mean salary in the country. The mean salary in Latvia to the large extent is directly proportional to the level of employment of the population. For the rise of the life level it is necessary to create favourable conditions for development of industry.
Authors and Affiliations
Yuri A. Kochetkov
Keywords
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