This chapter examines some economic indicators, which describe differences in income, wealth, and poverty. National accounting gives a tentative description of the value of an economy, with the distinction between gross domestic product, GDP, and gross national income, GNI. In an open economy the Balance of Payments describes the economic relationships of a country with the rest of the world; the Current Account registers the exchanges of goods and services, but it also includes remittances and international cooperation, very important items for developing countries; the Financial Account includes other financial flows. Rich and poor countries are classified according to income per capita, which is a very imperfect indicator of the standard of living in a country. By taking into account the local prices of non-tradable products, income per capita can be measured with the Purchasing Power Parities method, which offers another way to assess the actual economic possibilities of people. With both income measures large differences exist between rich and poor countries. How do economies grow? Since the 1960s different areas of the world have had very dissimilar long-run trends of economic growth. Only some countries in Asia have experienced high growth rates and reduced the distance in income per capita with the rich ones. Finally, the notions of absolute, relative, and multidimensional poverty are discussed.

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Prosperity

  • Marco Missaglia,
  • Gianni Vaggi

摘要

This chapter examines some economic indicators, which describe differences in income, wealth, and poverty. National accounting gives a tentative description of the value of an economy, with the distinction between gross domestic product, GDP, and gross national income, GNI. In an open economy the Balance of Payments describes the economic relationships of a country with the rest of the world; the Current Account registers the exchanges of goods and services, but it also includes remittances and international cooperation, very important items for developing countries; the Financial Account includes other financial flows. Rich and poor countries are classified according to income per capita, which is a very imperfect indicator of the standard of living in a country. By taking into account the local prices of non-tradable products, income per capita can be measured with the Purchasing Power Parities method, which offers another way to assess the actual economic possibilities of people. With both income measures large differences exist between rich and poor countries. How do economies grow? Since the 1960s different areas of the world have had very dissimilar long-run trends of economic growth. Only some countries in Asia have experienced high growth rates and reduced the distance in income per capita with the rich ones. Finally, the notions of absolute, relative, and multidimensional poverty are discussed.