COMPARATIVE

EMPIRICAL
ANALYSIS
NIKUNJ AGARWAL (13)
PRIONKUR BOSE (17)
SAULAT ALAM (33)
SHREAY SARAFF (34)
 OBJECTIVE

To understand, compare and showcase the present

economic scenario of 2 countries which got
independence at the same time.

YEARS OF STUDY

2007-2016
ISRAEL SRI LANKA
 SNAPSHOT
ISRAEL SRI LANKA

Year of 1948 1948

Independence

Capital City Jerusalem Sri Jayawardenepura Kotte

Currency New Shekel Sri Lankan Rupee

Area (km2) 22,072 65,610

Population 8,992,910 21,670,000

HDI Value 0.903 0.770

HDI Rank 22nd 76th

Source: wikipedia.com
 LITERATURE REVIEW
 “Defense R&D and Economic Growth in Israel: A Research
Agenda” By Mr. Dan Peled of Department of Economics
University of Haifa (2001)

 “A brief Economic History of Modern Israel” By Nadav

Halevi, Hebrew University (2008)

 “Financial Development and Economic Growth in Sri Lanka”

By Nelson Perera of University of Wollongong (2009)

 “Export, Import and Economic Growth : Evidence from Sri

Lanka” By Dr. Velnampy.T , Dean of Management Studies &
Commerce, University of Jaffna, Sri Lanka (2013)

Source:
https://www.researchgate.net/publication/253233477_Export_Import_and_Economic_G
rowth_Evidence_from_Sri_Lanka
 CORRELATION (ISRAEL)
Per Capita Income
Life Expectancy at Birth (US$)
80.50 21113.70
80.95 24603.61
81.40 23042.01
81.60 25869.26 Correlation Co-efficient = 0.92299
81.66 28718.06
81.70 27298.78
82.06 30778.48
82.15 32271.99
82.05 30683.48
82.41 31884.85
35000.00

30000.00
Per Capita Income (US$)

25000.00

20000.00

15000.00

10000.00

5000.00

0.00
80.00 80.50 81.00 81.50 82.00 82.50 83.00
Life Expectancy (in years)

Source: https://data.worldbank.org/
 CORRELATION (SRI LANKA)
Per Capita Income
Life Expectancy at Birth (US$)
74.14 1515.14
74.21 1865.87
74.27 1947.90
Correlation Co-efficient = 0.88691
74.35 2605.40
74.46 2972.79
74.59 3071.11
74.74 3273.83
74.91 3451.61
75.09 3461.49
75.28 3459.37

4500.00

4000.00

3500.00
Per Capita Income (US$)

3000.00

2500.00

2000.00

1500.00

1000.00

500.00

0.00
74.00 74.20 74.40 74.60 74.80 75.00 75.20 75.40
Life Expectancy (in years)
Source: https://data.worldbank.org/
 REGRESSION

Why do we use it?

-To show dependence of one variable(indicator) on another.
-The degree by which other factors affect the indicator in
question.

What do we gain out of showing this analysis?

- It shows us how the administration might be misled in
understanding the cause and effect relationship between two
factors, that is, the same action may not give the same result
in different scenarios.
 REGRESSION ANALYSIS - ISRAEL
Unemployment rate

Govt. Exp. on Education

Source: https://data.worldbank.org/
 REGRESSION ANALYSIS - SRI LANKA
Unemployment rate

Govt. Exp. on Education

Source: https://data.worldbank.org/
 FACTORS CONTRIBUTING TO
THIS ANOMALY
The unemployment rate in Israel continued to drop in January, falling to a
historic low level of 3.7%, the Central Bureau of Statistics reported January,
2018.
• The best field for working in Israel is the high-tech industry.
• The country’s research universities provide an excellent education for
graduates of the natural sciences or computer science who plan to enter one of
Israel’s high-tech companies or research & development facilities.
• There is also a prospering aerospace sector.
• Last but not least, numerous researchers, engineers, and entrepreneurs
working in Israel are employed in IT/CT, electronics, as well as the life and
health sciences. Stem cell research, new software.
• Government expenditure on education, total (% of GDP) in Israel was 5.76 as
of 2014

source: www.internations.org
 FACTORS CONTRIBUTING TO
THIS ANOMALY
According to a statement of the central Bank, ”the number is around 700, 000
and our of this 55% are females. Also, around 80% of the unemployed are in
the rural sector. Unemployment is highest among the age group of 20 – 30
years”.
• Outmoded education system and lack of skills.
• They should be given a chance to obtain skills only by “on the job training”.
• Almost all the people in Sri Lanka can converse either in Sinhala or Tamil or
both whereas it appears that all the employers expect the fluency in English.
• It is said that lack of computer knowledge is also another reason for
unemployment.
• Government expenditure on education, total (% of GDP) in Sri Lanka was 2.18
as of 2015, lowest value was 1.50 in 2012.

Arrangements should be made by the Vocational Training Authority,

Technical colleges and other institutions to impart these skills to the youths.

source: jayanath.wordpress.com
 CONCLUSION
• First-World vs Third-World.

• Civil War ending in 2009 had an economic cost $200Bn 5 times the GDP of
Sri Lanka in 2009.

• Disproportionate increase in Life Expectancy with respect to increase in

GDP.

• FDI was stagnant for Sri Lanka during the whole period of Civil War.
THANK YOU