History. Measuring Economic Development (2013)

Apunte Inglés
Universidad Universidad Pompeu Fabra (UPF)
Grado International Business Economics - 2º curso
Asignatura International Business & Economic History
Año del apunte 2013
Páginas 2
Fecha de subida 22/06/2014
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Introduction  to  indicators  of  economic  growth  and  development   The  main  indicators  of  economic  development  are:     GDP:  is  the  market  value  of  all  officially  recognized  final  goods  and  services  produced   within  a  country  in  a  given  period.  It  is  limited  of  measure  of  the  material  standard  of  living  of   the  population.     GDP  per  capita  it  gives  the  average  output  per  person.     GDP  at  Purchasing  Power  Parities  (PPP):  purchasing  power  of  the  currencies  is   equalized,  so  we  can  compare  across  countries  without  the  differences  of  price  level  in  each   country.     Gini  coefficient  it  is  the  extent  in  which  the  income  distribution  between  the   individuals  or  households  deviates  from  equal  distribution  (0  is  perfet,  1  is  inequality)1   The  quality  of  life  ones  are  Heigh    and  Life  expentancy.   Why  are  they  important?   They  provide  concepts  and  magnitudes  that  inform  about  reality.   They  establish  valid  comparisons  between  countries  and  regions   Time  series  make  comparisons  between  dissimilar  periods.       What  are  the  limits?   They  refer  to  large  aggregations  so  there  is  low  sensitivity  to  structural  change  processes,  and   there’s  a  lack  of  information  at  the  sub-­‐national  level.   Growth  and  development     Economic  growth  is  a  sustined  increase  in  the  total  output  of  goods  and  services  produced  by   a  given  society.  This  growth  may  occur  because  the  inputs  of  the  facotrs  of  production  (land,   labour  and  capital)  in.crease  or  because  equivalent  quantities  of  inputs  are  being  used  more   efiiciently.  Economic  growth  is  meaningful  only  if  it  is  measured  in  terms  of  output  per  capita.     Economic  development  is  the  economic  growth  accompanied  by  a  substantial  structural  or   organizational  change  in  the  economy.  This  “change”  may  be  the  cause  of  the  economic   growth  or  not   Determinants  of  Economic  Development   An  economy’s  total  output  is  determined  by  the  quantity  of  production  factors  employed   (land,  labour,  capital).  Resources  is  the  “land”.  Technology  change  allowas  some  of  the  limits   to  be  expanded  ,  both  though  the  discovery  of  new  resources  and  by  more  efficient  use  of  the   convetional  factors  of  production,  especially  humar  labor.                                                                                                                             1  Why  is  inequality  important?  Higher  inequality,  lower  demand  so  it  makes  lower  economic  growth   The  interrelationship  of  population,  resources  and  technology  is  conditioned  by  social   institutions,  including  values  and  actitudes.  One  of  the  function  that  institution  provides  is  to   provide  elements  of  continuity  and  stability,  without  which  societies  would  disintegrate.     Production  and  productivity   Production  is  the  process  by  which  factors  of  production  are  combined  to  produce  the  goods   and  services  desired  by  human  populations,  counted  in  value  terms   Productivity    is  the  ratio  of  the  useful  output  of  a  production  process  to  the  inputs  of  the   factors  of  production.   Total  factor  productivity  combined  productivity  if  all  factors.       ...