Oeconomica Jadertina, Vol. 12 No. 2, 2022.
Pregledni rad
https://doi.org/10.15291/oec.3842
GDP as failed measure of the 21st century economic activity
Vedran Recher
Sažetak
This paper deals with GDP as the most widespread and most represented measure of economic activity in the last seven decades. Although GDP outlined respective economic quintessence at the time, the paper shows that GDP was hiding far more than it revealed in the modern economy. The aim of the paper is to highlight the shortcomings of GDP by reviewing research that deals precisely with its measurement and its role in the modern economy. Local polynomial regression is also used to estimate the relationship between life satisfaction and GDP in a sample of 51 countries. Despite numerous criticisms of economic growth and GDP as adequate measures to provide analysis in the 21st century, economies around the world remain focused almost exclusively on that criteria in the midst of emerging from the Covid-19 Pandemic crisis. However, both the reports of the UN climate panel and the very appearance of the corona virus have revealed all the shortcomings of such an approach. For example, the occurrence of natural disasters such as earthquakes and consequent reconstruction can significantly increase GDP, but this is not desirable from the aspect of the well-being of society. The paper outlines main critiques of growth and GDP and offers possible alternatives, some of which are already in use in neighboring countries.
Ključne riječi
GDP; sustainable development; economic growth; measuring well-being
Hrčak ID:
286339
URI
Datum izdavanja:
1.12.2022.
Posjeta: 821 *