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The NNP and Sustainability in Open Economy: Highlights on Recent World Economy and on Open Economy of Bangladesh

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  • Haradhan Kumar Mohajan

    () (Premier University, Chittagong, Bangladesh)

Abstract

This paper discusses the theory of the net national product and, emphasizes on social welfare and sustainable accounting in open economy. It is observed that the world economy following an egalitarian path, the aggregate capital gains being positive is equivalent to the interest rate tending to decrease. This is important for the concept of net national product in open economies. Martin Weitzman gives a foundation for net national product as the stationary equivalent of a wealth maximizing path when there is a constant interest rate and no exogenous technological progress. The NNP should equal the maximum consumption level that can be sustained. The ordinary Hartwick rule gives a sufficient condition for constant consumption in a closed economy with constant population and stationary technology. An attempt has been taken in this paper to discuss the net national product and sustainability in open economy. The paper also highlights the recent world economy and the open economy of Bangladesh.

Suggested Citation

  • Haradhan Kumar Mohajan, 2011. "The NNP and Sustainability in Open Economy: Highlights on Recent World Economy and on Open Economy of Bangladesh," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 32-47, December.
  • Handle: RePEc:ksb:journl:v:4:y:2011:p:32-47
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    File URL: http://kasbit.edu.pk/KBJVol4/3-Haradhan-NNP%20and%20sustainability-INDUS.pdf
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    References listed on IDEAS

    as
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    3. Haradhan Kumar Mohajan, 2011. "The Real Net National Product in Sustainable Development," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 89-103, December.
    4. Dasgupta, P., 1990. "The Environment as Commodity.i," Research Paper 84, World Institute for Development Economics Research.
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    6. Corsetti, Giancarlo & Dedola, Luca & Leduc, Sylvain, 2010. "Optimal Monetary Policy in Open Economies," Handbook of Monetary Economics,in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 16, pages 861-933 Elsevier.
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    More about this item

    Keywords

    Net national product; Open economy; Social Welfare and Sustainability;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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