• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

to what extent is gdp per capita a useful measure of economic development

Extracts from this document...


To what extent is GDP per Capita a useful measure of economic development? Gross Domestic Product (GDP) is considered by most economists to be the principal indicator of a nation or region's wealth. Alongside, GDP per capita is the most important measure of individual economic welfare. Gross domestic product per capita is one of the measures of national income and output for a given country's economy. It is the total value of all final goods and services produced in a particular economy; the dollar value of all goods and services produced within a country's borders in a given year. High levels of, and steady growth in, both GDP and per capita GDP are primary aims of economic policy. GDP is relatively straight forward and therefore widely understood. ...read more.


A country's GDP may grow at a very fast rate and yet only a small proportion of its population could be the benefices of such growth, while the masses of its population may not experience any improvement in their standard of living. There may be growth but no development. Secondly, a fast growth rate in total output may indicate a healthy state of economy, but if population growth rate matches the output growth rate, then per capita grown rate is negligible. Thirdly, the use of per capita real income, converted into the foreign exchange rate, may not always be an adequate index to measure the development in a world of floating exchange rates for an index of real GDP adjusted for changes in terms of trade. ...read more.


The above analysis suggests that the per capita real income growth rather is not a very satisfactory measure of economic development and that it needs to be supplemented by other indicators. On the other hand * doesn't count unpaid labour, especially women's care work. * doesn't count externalities - costs that are externalized (passed on ) to someone else. For example, polluting factory are able to pass on the cost of damage to health and the environment. * does count negative goods - the clean up of a toxic waste dump is counted as a plus in terms of GDP. * ignores distribution, quality of life, equality, sustainability * ignores the question of whether the world can sustain high rates of growth given the depletion of non-renewable resources and environmental damage Introduction--> explain gdp per capita and its current involvement into the economy. For Against Conclusion ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Miscellaneous section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Miscellaneous essays

  1. "Why has there been a substantial increase in the adopted population of children born ...

    In 1997-98, 69 children were adopted in NSW, 64 in Victoria, 43 in Queensland and 37 in South Australia.12 The process of inter-country adoption involves 12 steps: 1. Obtaining an information pack from DOCS (Dep't. Community Service) 2. Lodge an expression of interest 3.

  2. Physical preparation and fitness for the uniformed services

    In the Army the environment could be harsh and would require a person to be physically strong and be able to survive in all sorts of terrain and you may have to walk for miles.

  1. Customer experience management in UK higher education

    (Lawson 2002 139) Customer Experience Management Customer Experience Management (CEM) is the creation of positive customer experience to build an emotional bond between customers and product or provider. The primary goal of CEM is to make customers satisfied and customers from loyal customers, to "enthused Ambassador" of the brand or product.

  2. Investigating The Use of Pectinase

    However, this is only up to 40�C, after this, the average volume of juice produced decreases. Therefore, I can state that the optimum temperature of pectinase is definitely between 31�C and 49�C inclusive. This is because an increase in temperature caused an increase in kinetic energy that led to a greater possibility of the enzyme and substrate binding.

  1. Compare the styles and effectiveness of Malcolm X and Martin Luther King

    contrasted is his disrespectful and ignoble actions towards his family and work colleague-come-lover. We as an audience are shown a sex scene between Graham and Ria, his partner, which is interrupted by a distressed phone call from his Mother. We are told that Graham's brother has gone missing and she

  2. Fire investigation; the triangle shirtwaist factory fire trial

    There was also a risk of that somebody could bur themselves or set alight an object. In addition, if we were to pick up a hot crucible without gloves we must use appropriate equipment so that we do not burn our hands.

  1. What evidence is there that children(TM)s development is influenced by play with siblings and ...

    Sibling's relationships also aid emotional development as they may identify and turn to each other for support or help each other cope with difficulties. This is highlighted by Stalker and Connors (2004) research with children who have a disabled sibling.

  2. How does building policy in Wales compare with policy in Scotland in terms of ...

    As a devolved nation, Wales has attempted to utilise it?s smaller population, in comparison to England, to achieve more ambitious sustainability targets. When Wales first gained control, in December 2011, of it?s own Building regulations, it aimed for a 55% improvement [1] on the National 2006 Building Regulations.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work