| Abstract: |
Prosperity has been considered the most desirable real outcome of all human
efforts however usually measured through gross domestic output of the economy
that may not capable to comprehend it effectively. This paper evaluates
wellbeing measured through some economic, social and institutional aspects
considering the dynamic behavior of variables based on Legatum Prosperity
Index (LPI), Maslow’s theory of human needs and Minsky financial instability
hypothesis. Considering the data within the context of economic quality,
business, education, health, financial security and environment, a comparative
analysis has been made to judge the level of prosperity engrossed through LPI.
Annual data related to Pakistan from 1960 to 20016 has been examined for about
hundred variables after reducing them into 21 exogenous and four endogenous
variables through index-transformation. Two Stage Least Squares (TSLS)
regression technique to solve the simultaneous equations models prove
relevant. The major findings reveal that LPI has successfully measure the
wellbeing scenario in case of Pakistan, further it ascertains that social and
institutional dimensions are vital complement for wellbeing in addition to
economic dimension which cannot uniquely be relied upon for sustainable
prosperity. |