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A Note on: Alternative Quantitative Measurements of Growth and Welfare for Policy Analysis | ||
| International Economics Studies | ||
| مقاله 8، دوره 36، شماره 1، تیر 2010، صفحه 65-68 اصل مقاله (24.91 K) | ||
| شناسه دیجیتال (DOI): 10.22108/ies.2022.15528 | ||
| نویسنده | ||
| Tran Van Hoa* | ||
| Victoria University, Melbourne, Australia | ||
| چکیده | ||
| Measuring development, growth and welfare is an important issue in normative and positive economics. The issue is more critical in developing economies where a good statistical indicator of income, living standard or poverty is crucial for decision-makers in corporate, government, non-government and international organizations in their for-profit or non-profit plans to promote business and trade, enhance growth and welfare, and reduce poverty in needy countries. In the current literature on development economics, trade liberalization for example has been encouraged through official negotiations and agreements and supported by the extensive technical programs of the International Monetary Fund, the World Bank, the Asian Development Bank or the World Trade Organisation and with substantial human and financial resources, to increase growth and raise income or reduce poverty in open but low-income economies. Several quantitative measurements in this context have been adopted to record the effects of this liberalization. The issue is that these different measurements can produce different outcomes casting therefore confusion on the impact of trade liberalization and the evaluation of the effectiveness of economic and trade policy (Winters 2007). This note is a simple demonstration of the sources of the difference in two popular indicators of growth and welfare, namely the rates of change of the GDP and GDP per head (called y and yh respectively) and their important policy implications. It can be regarded as a technical guide to the use of alternative income measurements for scholarly and practical policy analysis. The note also has some pedagogical and practical value, and its results can be applied to other areas of economic and non-economic activity. These include measurements of productivity, investment, consumption, inflation, education expenditure, labour skills, profitability, taxation, finance, bankruptcy, or other fields of quantitative investigation where scaled and ratio measurements are conceptually required. | ||
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