Measurement Of Economic Growth And Development Pdf

measurement of economic growth and development pdf

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GDP was not designed to assess welfare or the well being of citizens. It was designed to measure production capacity and economic growth. A number of countries, including India, are paving the way.

Indicators of economic development

As economic growth and economic development work on different areas of the economy, their respective progress is measured in different ways. Measuring economic growth and development comes with unique criteria for each. Below, we explore how each process is measured to determine accurate results and measuring the growth of an economy, as well as how to measure the intangible factors that are related to economic development.

The Gross Domestic Product GDP is a measure of the market value of goods and services provided by a country over a period of time, often one year or one quarter. The GDP is calculated by estimating the gross output of goods and services by the country, and subtracting the intermediate consumption the cost of materials and services used to produce the goods or services sold. Growth is not indicated by the GDP itself, but rather growth is determined by the percentage in increase of the GDP from one time period to another.

Just measuring nominal GDP does not take into account income made by foreigners in a country or income made by citizens in other countries. GDP also does not serve as the best system in order to compare factors such as cost of living for each country. When comparing GDP rates, it is important to adjust for inflation in order to get an accurate percentage rate of growth. The HDI was first devised in as a means of shifting the focus from purely income to human-centric economics.

In , a revised HDI was developed to account for inequality in a country. This is sometimes referred to as an IHDI, or the Inequality-adjusted Human Development Index, and is considered far more accurate than the initial HDI, though some still find the old formula useful in some applications.

The HDI takes several different factors into consideration to provide some measure on the social and economic development of a population.

As of the revision, the four main criteria used to determine the HDI are:. Older versions of the HDI took slightly different variables into consideration, such as the adult literacy rates. The newer Inequality-adjusted index factors this in by means of expected years of schooling. To even out exchange rates between countries for basis of comparison, money is converted to PPP dollars, or purchasing power parity.

Efforts in economic development will affect the standard of living in one of these four ways, which will cause the numbers to shift over time. Home Resources Here. Site Selection. Regional Data. Demographics Education Utilities Quality of Life.

What Leads to Economic Growth?

GDP Is Not a Measure of Human Well-Being

Economic growth is the increase in the market value of goods and services produced by an economy over time; the percentage rate of increase in the GDP. Economic growth is defined as the increase in the market value of goods and services produced by an economy over time. It is usually measured as a percentage rate of increase in the real gross domestic product. In economics, economic growth refers to the growth of potential output. It shows how a country is developing its economy.

Development: an analysis of concepts, measurement and indicators. Jair Soares Jr. Quintella II. I E-mail address: jairsoaresjr yahoo. This paper presents the result of a comprehensive analysis of the main forms of development measurement. The second part of this work constitutes a critical analysis of forty-three of the most well-known national and international indicators used to measure this phenomenon.


economic system has a process of economic growth, development or underdevelopment. The application of the model is provided for regions and.


The Measurement of Economic, Social and Environmental Performance of Countries: A Novel Approach

As economic growth and economic development work on different areas of the economy, their respective progress is measured in different ways. Measuring economic growth and development comes with unique criteria for each. Below, we explore how each process is measured to determine accurate results and measuring the growth of an economy, as well as how to measure the intangible factors that are related to economic development. The Gross Domestic Product GDP is a measure of the market value of goods and services provided by a country over a period of time, often one year or one quarter. The GDP is calculated by estimating the gross output of goods and services by the country, and subtracting the intermediate consumption the cost of materials and services used to produce the goods or services sold.

Economic growth is an increase in the production of goods and services over a specific period. To be most accurate, the measurement must remove the effects of inflation. Economic growth creates more profit for businesses. As a result, stock prices rise. As more jobs are created, incomes rise.

We have started our discussion of development by addressing very broad issues relating to the concept of development. However, much of the literature and thinking about 'development' focuses on economics. Indeed 'development' and 'economic development' have often been treated as synonymous concepts. The economic development of a country or society is usually associated with amongst other things rising incomes and related increases in consumption , savings, and investment.

Measurement of Economic Development

Economic development is the process of improving economic welfare in an economy. For example, an undeveloped economy will be primarily based on agriculture and very limited social services such as health care and education.

2 COMMENTS

Hobbfacdiogovt

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Though there are several criteria or principles to measure the economic development, yet none provides a satisfactory and universally acceptable index of economic development.

Tolomeo A.

REPLY

This paper presents a new analytical framework for assessing spatial disparities among countries.

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