IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v171y2024i3d10.1007_s11205-023-03283-7.html
   My bibliography  Save this article

Economic Growth and Human Well-being in India: Evidence through adjusted GDP measure

Author

Listed:
  • Shashank Vikram Pratap Singh

    (University of Delhi)

  • V. K. Shrotryia

    (University of Delhi)

Abstract

The outcome of economic growth is visualised as the well-being of citizens or human well-being (HWB). However, it has been a great challenge to measure HWB. Though there are known reasons for considering GDP and its growth as a measure of overall development and progress of nations, yet mostly it is being used as a gospel indicator to compare nations and design appropriate policies. This paper is an effort to develop a comprehensive adjusted GDP to measure HWB through secondary data for thirty years (1990–91 to 2019–20) in India. We make thirty-five adjustments to net national income (NNI) to compute the adjusted national income (ANI) index based on the system analysis approach. The empirical findings show that the gap between NNI and ANI has been growing over time, and the ANI index shows an increasing trend. Through the analysis it is suggested that economic growth should be focused only if it improves HWB (full or partial). The paper attempts to make intervention into policy shift for improving HWB vis-à-vis happiness of people.

Suggested Citation

  • Shashank Vikram Pratap Singh & V. K. Shrotryia, 2024. "Economic Growth and Human Well-being in India: Evidence through adjusted GDP measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 171(3), pages 987-1018, February.
    • Handle: RePEc:spr:soinre:v:171:y:2024:i:3:d:10.1007_s11205-023-03283-7
    DOI: 10.1007/s11205-023-03283-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-023-03283-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-023-03283-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Biswas-Diener & Ed Diener, 2006. "The Subjective Well-Being of the Homeless, and Lessons for Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(2), pages 185-205, April.
    2. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    3. Posner, Stephen M. & Costanza, Robert, 2011. "A summary of ISEW and GPI studies at multiple scales and new estimates for Baltimore City, Baltimore County, and the State of Maryland," Ecological Economics, Elsevier, vol. 70(11), pages 1972-1980, September.
    4. Krueger, Alan B. & Schkade, David A., 2008. "The reliability of subjective well-being measures," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1833-1845, August.
    5. Facundo Alvaredo & Thomas Piketty & Emmanuel Saez & Lucas Chancel & Gabriel Zucman, 2018. "World Inequality Report 2018," PSE-Ecole d'économie de Paris (Postprint) halshs-01885458, HAL.
    6. Günseli BERIK, 2020. "Measuring what matters and guiding policy: An evaluation of the Genuine Progress Indicator," International Labour Review, International Labour Organization, vol. 159(1), pages 71-94, March.
    7. Lucas Chancel & Thomas Piketty, 2019. "Indian Income Inequality, 1922‐2015: From British Raj to Billionaire Raj?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 33-62, November.
    8. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    9. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
    10. Simon Kuznets & Lillian Epstein & Elizabeth Jenks, 1946. "National Income and Its Composition, 1919-1938, Volume II," NBER Books, National Bureau of Economic Research, Inc, number kuzn41-3, May.
    11. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
    12. Long, Xianling & Ji, Xi, 2019. "Economic Growth Quality, Environmental Sustainability, and Social Welfare in China - Provincial Assessment Based on Genuine Progress Indicator (GPI)," Ecological Economics, Elsevier, vol. 159(C), pages 157-176.
    13. Ruut Veenhoven & Piet Ouweneel, 1995. "Livability of the welfare-state," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 36(1), pages 1-48, September.
    14. Wilkinson, R.G. & Pickett, K.E., 2008. "Income inequality and socioeconomic gradients in mortality," American Journal of Public Health, American Public Health Association, vol. 98(4), pages 699-704.
    15. Lawn, Philip & Clarke, Matthew, 2010. "The end of economic growth? A contracting threshold hypothesis," Ecological Economics, Elsevier, vol. 69(11), pages 2213-2223, September.
    16. Marc Fleurbaey, 2009. "Beyond GDP: The Quest for a Measure of Social Welfare," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 1029-1075, December.
    17. Piketty, Thomas & Chancel, Lucas, 2017. "Indian income inequality, 1922-2014: From British Raj to Billionaire Raj ?," CEPR Discussion Papers 12409, C.E.P.R. Discussion Papers.
    18. Dreze, Jean & Sen, Amartya, 2002. "India: Development and Participation," OUP Catalogue, Oxford University Press, edition 2, number 9780199257492, Decembrie.
    19. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, Decembrie.
    20. O'Mahony, Tadhg & Escardó-Serra, Paula & Dufour, Javier, 2018. "Revisiting ISEW Valuation Approaches: The Case of Spain Including the Costs of Energy Depletion and of Climate Change," Ecological Economics, Elsevier, vol. 144(C), pages 292-303.
    21. Ruut Veenhoven, 1991. "Is happiness relative?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 24(1), pages 1-34, February.
    22. Richard Easterlin, 2005. "Feeding the Illusion of Growth and Happiness: A Reply to Hagerty and Veenhoven," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(3), pages 429-443, December.
    23. Wilkinson, Richard G & Pickett, Kate E., 2006. "Income inequality and population health: A review and explanation of the evidence," Social Science & Medicine, Elsevier, vol. 62(7), pages 1768-1784, April.
    24. J. Steven Landefeld & Shaunda M. Villones, 2009. "GDP and Beyond: Measuring Economic Progress and Sustainability," BEA Papers 0096, Bureau of Economic Analysis.
    25. Amartya K. Sen, 1997. "From Income Inequality to Economic Inequality," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 384-401, October.
    26. Nanak Kakwani, 1997. "Growth Rates Of Per-Capita Income And Aggregate Welfare: An International Comparison," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 201-211, May.
    27. Kubiszewski, Ida & Costanza, Robert & Franco, Carol & Lawn, Philip & Talberth, John & Jackson, Tim & Aylmer, Camille, 2013. "Beyond GDP: Measuring and achieving global genuine progress," Ecological Economics, Elsevier, vol. 93(C), pages 57-68.
    28. Ruut Veenhoven, 1995. "World Database of Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 34(3), pages 299-313, March.
    29. Kenny, Daniel C. & Costanza, Robert & Dowsley, Tom & Jackson, Nichelle & Josol, Jairus & Kubiszewski, Ida & Narulla, Harkiran & Sese, Saioa & Sutanto, Anna & Thompson, Jonathan, 2019. "Australia's Genuine Progress Indicator Revisited (1962–2013)," Ecological Economics, Elsevier, vol. 158(C), pages 1-10.
    30. Jason Raibley, 2012. "Happiness is not Well-Being," Journal of Happiness Studies, Springer, vol. 13(6), pages 1105-1129, December.
    31. Richard Layard, 2006. "Happiness and Public Policy: a Challenge to the Profession," Economic Journal, Royal Economic Society, vol. 116(510), pages 24-33, March.
    32. Van der Slycken, Jonas & Bleys, Brent, 2020. "A Conceptual Exploration and Critical Inquiry into the Theoretical Foundation(s) of Economic Welfare Measures," Ecological Economics, Elsevier, vol. 176(C).
    33. Sardar M. N. Islam & Matthew F. Clarke, 2005. "The welfare economics of measuring sustainability: a new approach based on social choice theory and systems analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(5), pages 282-296.
    34. Bleys, Brent, 2008. "Proposed changes to the Index of Sustainable Economic Welfare: An application to Belgium," Ecological Economics, Elsevier, vol. 64(4), pages 741-751, February.
    35. Supa Pengpid & Karl Peltzer, 2019. "Sedentary Behaviour, Physical Activity and Life Satisfaction, Happiness and Perceived Health Status in University Students from 24 Countries," IJERPH, MDPI, vol. 16(12), pages 1-7, June.
    36. Robert Cummins, 1996. "The domains of life satisfaction: An attempt to order chaos," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 38(3), pages 303-328, January.
    37. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    38. V. K. Shrotryia & Shashank Vikram Pratap Singh, 2020. "Measuring Progress Beyond GDP: A Theoretical Perspective," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 143-165, November.
    39. Stymne, Susanna & Jackson, Tim, 2000. "Intra-generational equity and sustainable welfare: a time series analysis for the UK and Sweden," Ecological Economics, Elsevier, vol. 33(2), pages 219-236, May.
    40. Daly, Herman E., 1990. "Toward some operational principles of sustainable development," Ecological Economics, Elsevier, vol. 2(1), pages 1-6, April.
    41. Amartya Sen & Joseph Stiglitz & Jean-Paul Fitoussi, 2010. "Mis-measuring our lives : why GDP doesn't add up?," Post-Print hal-03415632, HAL.
    42. Blundell,R. W. & Preston,Ian & Walker,Ian (ed.), 1994. "The Measurement of Household Welfare," Cambridge Books, Cambridge University Press, number 9780521451956, June.
    43. Sen, Amartya, 1979. "The Welfare Basis of Real Income Comparisons: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(1), pages 1-45, March.
    44. Clarke, Matthew & Islam, Sardar M. N., 2003. "Measuring social welfare: application of social choice theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(1), pages 1-15, March.
    45. Sardar Islam & Matthew Clarke, 2002. "The Relationship between Economic Development and Social Welfare: A New Adjusted GDP Measure of Welfare," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 57(2), pages 201-229, February.
    46. Lane,Robert E., 1991. "The Market Experience," Cambridge Books, Cambridge University Press, number 9780521407373, June.
    47. repec:sae:envval:v:3:y:1994:i:3:p:191-209 is not listed on IDEAS
    48. Castaneda, Beatriz E., 1999. "An index of sustainable economic welfare (ISEW) for Chile," Ecological Economics, Elsevier, vol. 28(2), pages 231-244, February.
    49. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    50. V.K. Shrotryia & Shashank Vikram Pratap Singh, 2023. "Explaining the linkages of happiness construct: a theoretical and empirical study on Indian population," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 8(2), pages 102-127.
    51. Amartya Sen, 1976. "Real National Income," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 19-39.
    52. Goodland, Robert & Daly, Herman, 1993. "Why Northern income growth is not the solution to Southern poverty," Ecological Economics, Elsevier, vol. 8(2), pages 85-101, October.
    53. Richard A. Easterlin, 2013. "HAPPINESS, GROWTH, AND PUBLIC POLICY-super-†," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 1-15, January.
    54. Lawn, Philip A., 2003. "A theoretical foundation to support the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and other related indexes," Ecological Economics, Elsevier, vol. 44(1), pages 105-118, February.
    55. World Bank, 2003. "World Development Report 2003," World Bank Publications - Books, The World Bank Group, number 5985, April.
    56. Christian Leipert, 1986. "Social Costs of Economic Growth," Journal of Economic Issues, Taylor & Francis Journals, vol. 20(1), pages 109-131, March.
    57. Sebastian Gil & Jerzy Sleszynski, 2003. "An index of sustainable economic welfare for Poland," Sustainable Development, John Wiley & Sons, Ltd., vol. 11(1), pages 47-55.
    58. Robert Chambers & Deepa Narayan & Meera K. Shah & Patti Petesch, 2000. "Voices of the Poor : Crying Out for Change," World Bank Publications - Books, The World Bank Group, number 13848, April.
    59. World Bank, 2003. "World Development Report 2004," World Bank Publications - Books, The World Bank Group, number 5986, April.
    60. Andrew T. Jebb & Louis Tay & Ed Diener & Shigehiro Oishi, 2018. "Happiness, income satiation and turning points around the world," Nature Human Behaviour, Nature, vol. 2(1), pages 33-38, January.
    61. Pickett, Kate E. & Wilkinson, Richard G., 2015. "Income inequality and health: A causal review," Social Science & Medicine, Elsevier, vol. 128(C), pages 316-326.
    62. Clarke, Matthew & Islam, Sardar M.N., 2005. "Diminishing and negative welfare returns of economic growth: an index of sustainable economic welfare (ISEW) for Thailand," Ecological Economics, Elsevier, vol. 54(1), pages 81-93, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. V. K. Shrotryia & Shashank Vikram Pratap Singh, 2020. "Measuring Progress Beyond GDP: A Theoretical Perspective," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 143-165, November.
    2. Shashank Vikram Pratap Singh & V. K. Shrotryia, 2022. "Income Inequality and Human Wellbeing: An Empirical Analysis Using Atkinson Measure of Inequality," Emerging Economy Studies, International Management Institute, vol. 8(2), pages 116-128, November.
    3. Long, Xianling & Ji, Xi, 2019. "Economic Growth Quality, Environmental Sustainability, and Social Welfare in China - Provincial Assessment Based on Genuine Progress Indicator (GPI)," Ecological Economics, Elsevier, vol. 159(C), pages 157-176.
    4. Mirko Armiento, 2016. "The Sustainable Welfare Index for Italy, 1960-2013," Working Papers 1601, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2016.
    5. Van der Slycken, Jonas & Bleys, Brent, 2020. "A Conceptual Exploration and Critical Inquiry into the Theoretical Foundation(s) of Economic Welfare Measures," Ecological Economics, Elsevier, vol. 176(C).
    6. O'Donnell, Gus & Oswald, Andrew J., 2015. "National well-being policy and a weighted approach to human feelings," Ecological Economics, Elsevier, vol. 120(C), pages 59-70.
    7. Jonas Van der Slycken & Brent Bleys, 2020. "Cost-shifting Versus “Full” Accountability: Dealing with Cross-time and Cross-boundary Issues in the ISEW and GPI. An application to Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 20/1003, Ghent University, Faculty of Economics and Business Administration.
    8. Luhua Wu & Shijie Wang & Xiaoyong Bai & Guangjie Luo & Jinfeng Wang & Fei Chen & Chaojun Li & Chen Ran & Sirui Zhang, 2022. "Accelerating the Improvement of Human Well-Being in China through Economic Growth and Policy Adjustment," IJERPH, MDPI, vol. 19(19), pages 1-20, October.
    9. Howarth, Richard B. & Kennedy, Kevin, 2016. "Economic growth, inequality, and well-being," Ecological Economics, Elsevier, vol. 121(C), pages 231-236.
    10. Kubiszewski, Ida & Costanza, Robert & Franco, Carol & Lawn, Philip & Talberth, John & Jackson, Tim & Aylmer, Camille, 2013. "Beyond GDP: Measuring and achieving global genuine progress," Ecological Economics, Elsevier, vol. 93(C), pages 57-68.
    11. Jonas Slycken & Brent Bleys, 2023. "Towards ISEW and GPI 2.0: Dealing with Cross-Time and Cross-Boundary Issues in a Case Study for Belgium," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 557-583, August.
    12. Jonas Van der Slycken & Brent Bleys, 2021. "Towards ISEW and GPI 2.0, part I: developing two alternative measures of economic welfare with distinct time and boundary perspectives for Belgium," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1026, Ghent University, Faculty of Economics and Business Administration.
    13. Gabriel Leite Mota, 2022. "Unsatisfying ordinalism: The breach through which happiness (re)entered economics," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 513-528, June.
    14. Tekleselassie, Tsegay Gebrekidan, 2016. "Three essays on the impact of institutions and policies on socio-economic outcomes," Economics PhD Theses 1316, Department of Economics, University of Sussex Business School.
    15. Ji, Xi & Wu, Guowei & Su, Pinyi & Luo, Xuanyuan & Long, Xianling, 2022. "Does legislation improvement alleviate the decoupling between welfare and wealth in China?," Ecological Economics, Elsevier, vol. 201(C).
    16. Brennan, Andrew John, 2008. "Theoretical foundations of sustainable economic welfare indicators -- ISEW and political economy of the disembedded system," Ecological Economics, Elsevier, vol. 67(1), pages 1-19, August.
    17. Fengyu Wu, 2020. "An Examination of the Effects of Consumption Expenditures on Life Satisfaction in Australia," Journal of Happiness Studies, Springer, vol. 21(8), pages 2735-2771, December.
    18. Bleys, Brent & Whitby, Alistair, 2015. "Barriers and opportunities for alternative measures of economic welfare," Ecological Economics, Elsevier, vol. 117(C), pages 162-172.
    19. Juncal Cuñado & Fernando Gracia, 2012. "Does Education Affect Happiness? Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 185-196, August.
    20. Van der Slycken, Jonas & Bleys, Brent, 2024. "Is Europe faring well with growth? Evidence from a welfare comparison in the EU-15 (1995–2018)," Ecological Economics, Elsevier, vol. 217(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:171:y:2024:i:3:d:10.1007_s11205-023-03283-7. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.