Is GDP an Appropriate Indicator of Economic Performance and Social Progress in the Context of Globalization?
The article deals with the ability of the GDP indicator to interpret and capture economic performance, social progress and sustainable economic growth. Given the fact that the construction of indicators such as GDP does not monitor the quality of population, environmental changes or changes in stocks of non-renewable natural resources, it is necessary to take this into account (GDP is primarily an aggregate of production) and look for indicators that would allow a more complex analysis of not only economic performance, but also its social and environmental aspects. Some proposals for how to assess the sustainability of economic growth are summed up in the second part of the paper. This part of the paper is also devoted to the description of the Index of Economic Well-Being (Sharpe, Osberg). This section deals with the possibilities of measurement of households´ living standards and it also describes the Index of Economic Welfare (Sharpe, Osberg). This index takes account of other aspects of households’ quality of life (social inequality, social risks, etc.). The substance of a controversial problem called "phantom GDP" (imaginary GDP) is introduced in the last section of the paper. This effect has been described by some authors in connection with possible impacts of globalization on economic performance. The effect of "phantom GDP" is associated with a potential impact of outsourcing and offshoring on economic performance of home countries of multinational companies.
Volume (Year): 2012 (2012)
Issue (Month): 5 ()
|Contact details of provider:|| Postal: nam. W. Churchilla 4, 130 67 Praha 3|
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/aop/ Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Osberg, Lars & Sharpe, Andrew, 2002. "An Index of Economic Well-Being for Selected OECD Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 291-316, September.
When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2012:y:2012:i:5:id:377:p:3-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.