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Pertinent Analytic Method to Correctly Measure Contributions to Growth in Gross Domestic Product

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  • Antoine Brunet

Abstract

In this paper, Antoine Brunet questions the OECD method in calculating contributions to GDP growth. He tries to show this method induces the users to seriously misjudge the contribution of external trade balance to GDP growth. He shows there is an alternative method, i.e. the AB method which is mathematically as correct as the OECD one. And this method is much more pertinent and allows the users to distinguish between two kinds of countries: on the one hand, the mercantilist countries and on the other hand, the non-mercantilist countries. Key words: Growth contribution, External trade balance, Borrowing, Growth strategy, Mercantilism.JEL: E01, E29, F43, F53.

Suggested Citation

  • Antoine Brunet, 2009. "Pertinent Analytic Method to Correctly Measure Contributions to Growth in Gross Domestic Product," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 397-408.
    • Handle: RePEc:voj:journl:v:56:y:2009:i:3:p:397-408:id:226
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    More about this item

    Keywords

    Growth contribution; External trade balance; Borrowing; Growth strategy; Mercantilism;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E29 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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