Net Domestic Product Research Articles

Climate Shocks in the Anthropocene Era: Should Net Domestic Product Reflect Climate Disasters?

The asset costs of natural disasters in the United States grew rapidly from 1980 to 2023, with the trend rising 4.9% annually in real terms to $90 billion in 2023. Much of this trend in asset losses is likely due to climate change, and implies a faster depreciation of real assets. We argue that the expected depreciation from these events should be included in consumption of fixed capital (CFC), leading to lower levels and slightly lower growth rates for net domestic product (NDP) and net domestic investment. We use Poisson pseudo‐maximum‐likelihood regressions to estimate this expectation and to generate our experimental measure of costs. An alternative calculation of CFC and NDP might directly include the time series of costs incurred rather than the far smoother expectation; this was the procedure adopted before 2009 and resulted in abrupt changes in NDP.

Multivariate regression analysis of airline market recovery in the post-pandemic era

While COVID-19 has substantially affected the airline industry, a business rebound is expected. To better anticipate the needed workforce, this study revisited economic datasets from the Federal Reserve Bank, Bureau of Transportation Statistics (BTS), the Federal Aviation Administration (FAA), and other essential resources to predict the market recovery. VOSviewer and multivariate regression analysis were used to identify critical research clusters and important variables of the emerging market recovery. Minitab was used to run the multivariate regression analysis and the correlation coefficients among selected variables were discovered. The result showed that strongly correlated variables for airline market recovery included Net Domestic Product (NDP), Gross Domestic Product (GDP), and Real Disposable Personal Income (RDPI) in this study.

Components of Out-of-Pocket Expenditure and Their Relative Contribution to Economic Burden of Diseases in India

High out-of-pocket expenditure (OOPE) on health in India may limit achieving universal health coverage. A clear insight on the components of health expenditure may be necessary to make allocative decisions to reduce OOPE, and such details by sociodemographic group and state have not been studied in India. To analyze the relative contribution of drugs, diagnostic tests, doctor and surgeon fees, and expenditure on other medical services and nonmedical health-related services, such as transport, lodging, and food, by sociodemographic characteristics of patients, geography, and type of illness. A population-based cross-sectional health consumption survey conducted by the National Sample Survey Organisation in 2018 was analyzed in this cross-sectional study. Respondents who provided complete information on costs of medicine, doctors, diagnostics tests, other medical costs, and nonmedical costs were selected. Data were analyzed from August through September 2021. Mean and median share of components (ie, medicine, diagnostic tests, doctor fees, other medical costs, and nonmedical costs) in total health care expenditure and income were calculated. Bivariate survey-weighted mean (with 95% CI) and median (IQR) expenditures were calculated for each component across sociodemographic characteristics. The proportion of total expenditure and income contributed by each cost was calculated for each individual. Mean and median were then used to summarize such proportions at the population level. The association between state net domestic product per capita and component share of each health care service was graphically explored. Health expenditure details were analyzed for 43 781 individuals for inpatient costs (27 272 [64.3%] women; 26 830 individuals aged 25-64 years [59.9%]) and 8914 individuals for outpatient costs (4176 [48.2%] women; 4901 individuals aged 25-64 years [54.2%]); most individuals were rural residents (24 106 inpatients [67.0]; 4591 outpatients [63.9%]). Medicines accounted for a mean of 29.1% (95% CI, 28.9%-29.2%) of OOPE among inpatients and 60.3% (95% CI, 59.7%-60.9%) of OOPE among outpatients. Doctor consultation charges were a mean of 15.3% (95% CI, 15.1%-15.4%) of OOPE among inpatients and 12.4% (95% CI, 12.1%-12.6%) of OOPE among outpatients. Diagnostic tests accounted for a mean of 12.3% (95% CI, 12.2%-12.4%) of OOPE for inpatient and 9.2% (95% CI, 8.9%-9.5%) of OOPE for outpatient services. Nonmedical costs accounted for a mean of 23.6% (95% CI, 23.3%-23.8%) of OOPE among inpatients and 14.6% (95% CI, 14.1%-15.1%) of OOPE among outpatients. Mean share of OOPE from doctor consultations and diagnostic test charges increased with socioeconomic status. For example, for the lowest vs highest monthly per capita income quintile among inpatients, doctor consultations accounted for 11.5% (95% CI, 11.1%-11.8%) vs 21.2% (95% CI, 20.8%-21.6%), and diagnostic test charges accounted for 10.9% (95% CI, 10.6%-11.1%) vs 14.3% (95% CI, 14.0%-14.5%). The proportion of mean annual health expenditure from mean annual income was $299 of $1918 (15.6%) for inpatient and $391 of $1788 (21.9%) for outpatient services. This study found that nonmedical costs were significant, share of total health care OOPE from doctor consultation and diagnostic test charges increased with socioeconomic status, and annual cost as a proportion of annual income was lower for inpatient than outpatient services.

An appraisal of interlinkages between macro-economic indicators of economic well-being and the sustainable development goals

Recognising the well-known limitations of economic growth as a litmus test of progress and the call by Target 19 of Sustainable Development Goal (SDG) 17 to “develop measurements on progress on sustainable development that complement gross domestic product”, this paper advances understanding of the linkages between alternative measures of economic well-being, the well-being economy and the SDGs. A conceptual model is presented, linking four capital assets to well-being goals and domains, which are connected to related SDGs. An assessment is conducted on the extent to which Gross Domestic Product and five alternative indicators of economic well-being (Environmentally Adjusted Net Domestic Product, Measure of Economic Welfare, Genuine Savings, Genuine Progress Indicator and Inclusive Wealth Index) align with (a) the dimensions of economic well-being, and (b) various environmental, economic, social and institutional targets set by the SDGs. The Genuine Progress Indicator (GPI) is found to be the most comprehensive in coverage, accounting for market-based welfare, services from essential capital, and various environmental and social costs, and linking directly to targets in fourteen of the seventeen SDGs. The paper discusses how greater use of alternative measures of economic well-being by policymakers can encourage transitions to economies which prioritise well-being and desirability objectives.

Útflutningur hráefna: Hagræn áhrif

Ein af meginniðurstöðum hagfræðinnar er að óheft alþjóðaviðskipti bæti nýtingu framleiðsluþátta og auki heimsframleiðslu. Með vísan til hennar hefur verið lögð á það nokkur áhersla í efnahagsskipulagi heimsins að gera milliríkjaviðskipti sem frjálsust. Frjáls milliríkjaviðskipti krefjast þess að þjóðir sem búa yfir verðmætum hráefnum svo sem jarðefnum, orkulindum eða fiskistofnum selji þessi hráefni hæstbjóðanda. Sá er oft staðsettur erlendis þar sem iðnvæðing er háþróuð og markaðir stórir. Heimaríkið verður því iðulega útflutningsland hráefna, en úrvinnsla þeirra fer fram erlendis. Í þessari grein verður reynt að varpa ljósi á ýmsar hagrænar hliðar á útflutningi hráefna. Nánar tiltekið verður leitað svara við eftirtöldum spurningum: Er útflutningur hráefna til þess fallin að auka landsframleiðslu í útflutningslandinu? Sé svo munu þá allir hagnast? Mun útflutningslandið eflast á aðra mælikvarða, t.d. fólksfjölda? Eykur svona útflutningur heimsframleiðsluna? Niðurstöðurnar eru í megindráttum að óheft alþjóðaviðskipti leiði til þess að samanlögð landsframleiðsla útflutningslands og innflutningslands vaxi, en vera kunni að landsframleiðsla í útflutningslandi hráefna lækki og fólki fækki. Seljendur hráefnanna muni á hinn bóginn ávallt hagnast.

The Relationship between Public Debt and Economic Growth in Jordan for the Period (1990-2018)

The study aims to identify the effect of public debt on economic growth in Jordan between1990 and 2018. The importance of the study lies in the effects of net public debt on the Jordanian economy and economic stability, and thus the identification of the role of public debt in Jordanian economic growth. To achieve the aim of the study the descriptive analytical approach was used. Simple Linear Regression (SLR) has been employed to measure and analyze the relationship between Net Public Debt (NPD) and Gross Domestic Product (GDP). The study showed that there is a clear negative relationship between the ratio of NPD to GDP and the rate of economic growth in Jordan during the first period of the study, and this relationship became more clear during the period 2006-2018, and this negative relationship became strong when the public debt ratio to GDP exceeded 80.0%. Keywords : Gross Domestic Product (GDP), Net Public Debt (NPD), Net External Debt (NED), Net Domestic Debt (NDD), Economic Growth (EG), Jordan. DOI: 10.7176/JESD/11-12-09 Publication date: June 30th 2020

Long-run Association Between Bank Credit and Output: A Study on Districts’ Panel of West Bengal, India

In a globalized world, the financial sectors and the real sectors are interlinked. Although it is a common phenomenon to a developed economy in its national as well as provincial levels, it has hardly been tested for the low-income countries like India. It is further difficult to have such linkage effects at the provinces and district levels. This article aims to examine whether per capita commercial bank credit and per capita net district domestic product for the districts of West Bengal state in India have long-run associations for the period 1993–2014 in a panel data framework. Using the panel cointegration and Vector error correction mechanism (VECM) technique, the study reveals that both the financial and real sector indicators are cointegrated and the short-run errors are corrected significantly to establish that there is bilateral causality between credit and output in both long run and short run.

PENGARUH PRODUK DOMESTIK BRUTO DAN SBI TERHADAP PENERIMAAN PAJAK DI INDONESIA

The research to analyse effect net domestic product and SBI on tax revenue in Indonesia with independent variables net domestic product and SBI also dependent variables tax revenue. Data is a time series between 1981 - 2010 with ordinary least square (OLS) and the model of formula used is multiply linier regression. The research result shows that net domestic product gives a positive effect and significant on tax revenue in Indonesia on 99% level. While SBI has a negative effect and significant on tax revenue in Indonesia on 90% level.

Assessment of Factors Affecting Onshore Wind Power Deployment in India

Abstract The Present study focuses on the impact of various factors on the growth of wind power generation in seven most wind energy prone states of India, that contain 97 % of India’s total wind power potential. The impact of state-wise policy parameters Feed-in Tariff (FIT) rate, Renewable Purchase Obligations (RPO) and Power Purchase Agreement (PPA) are evaluated in terms of aggregate policy indices that indicate the likelihood of wind power deployment in that state, through multivariate statistical analysis. The wind energy technology with reference to wind turbine specific policies, scaling of the project, the impact of hybrid policy, grid-related technological advancements and the improvement of capacity utilization factor (CUF) are discussed. Further, the impact of per capita net domestic product (PCNDP) and power demand-supply scenario are assessed. It was found that these two factors are non-influential on wind power growth. The outcome of the present study is that aggregate policy indices, captive/third party use of feasibility, presence of repowering policy, actual CUF obtained at the location, delay in cash flow and total available power potential are the factors that significantly influence the growth of cumulative installed capacity. This study provides an insight for policymakers for a quantitative assessment of the existing policies along with other factors and assists the project developers to compare and identify suitable locations for wind power projects in the near future. The exchange rate of 1 USD ($) = 69.38 INR (₹) has been taken throughout the manuscript.

Determinants of Economic Growth in Turkey in the Presence of Structural Breaks

Sustainable economic growth is defined as a continuous increase in environmentally adjusted net domestic product (Bartelmus, 1994). This study investigates the role of natural gas consumption and trade openness in relation with the economic growth of Turkey for the period 1977-2017 throughout which Turkey underwent several political and economic shocks. To accomplish this, the paper employs the Kejriwal and Perron (2010) structural break test to investigate the relationship between economic growth and its determinants in the presence of structural shifts. By demonstrating the impacts of variables on economic growth through different sub-regimes, the outcomes underline the importance of structural breaks in estimations.

A study on addiction pattern among construction workers in a metropolitan city of Southern India

Background Construction sector is a booming industry and an important sector which contributes significantly to GDP. Construction labour form 7.5 of the world labour force. In India nearly two thirds of the contribution to the net domestic product is by the unorganized sector. The Substance Abuse and Mental Health Services Administration study shows that Substance abuse among workers poses major health risks and productivity of workers.Objective To understand the health problems and addiction pattern among the construction workers and to enable appropriate interventions.Methodology A cross sectional study conducted at two construction sites in a metropolitan city during 2015.The construction sites were selected in southern Bengaluru and all workers were enrolled as study subjects. A pretested semi structured questionnaire was used to collect the data. Descriptive statistics like percentages were calculated and Chi square test was done to check the significance of difference. Results Majority of them 87.3 belonged to 15-45-year age group 40.3 to class IV socioeconomic status 40 were Hindu by religion. Around 40 of them were Illiterates and 68 of them were unskilled workers. The prevalence of Tobacco smoking Tobacco chewing and Alcohol consumption were 26.98 47.62 and 32.28 respectively. There was a statistically significant association P lt 0.05 between Tobacco smoking Tobacco chewing and morbidity status.Conclusion The prevalence of Tobacco use and alcohol consumption is high among the construction workers. There is need for intervention programmes like regular health education sessions behaviour change communication programmes screening camps for cancers and counselling for de-addiction therapies

A study on addiction pattern among construction workers in a metropolitan city of southern India

Background Construction sector is a booming industry and an important sector which contributes significantly to GDP. Construction labour form 7.5 of the world labour force. In India nearly two thirds of the contribution to the net domestic product is by the unorganized sector. The Substance Abuse and Mental Health Services Administration study shows that Substance abuse among workers poses major health risks and productivity of workers.Objective To understand the health problems and addiction pattern among the construction workers and to enable appropriate interventions.Methods A cross sectional study conducted at two construction sites in a metropolitan city during 2015.The construction sites were selected in southern Bangalore and all workers were enrolled as study subjects. A pretested semi structured questionnaire was used to collect the data. Descriptive statistics like percentages were calculated and Chi square test was done to check the significance of difference. Results Majority of them 87.3 belonged to 15-45-year age group 40.3 to class IVsocioeconomic status 40 were Hindu by religion. Around 40 of them were Illiterates and 68 of them were unskilled workers. The prevalence of Tobacco smoking Tobacco chewing and Alcohol consumption were 26.98 47.62 and 32.28 respectively. There was a statistically significant association P lt 0.05 between Tobacco smoking Tobacco chewing and morbidity status.Conclusion The prevalence of Tobacco use and alcohol consumption is high among the construction workers. There is need for intervention programmes like regular health education sessions behaviour change communication programmes screening camps for cancers and counselling for de addiction therapies.

The Effect of Public Health Expenditure on Infant Mortality: Evidence from a Panel of Indian States, 1983–1984 to 2011–2012

Using a panel data set of Indian states between 1983–1984 and 2011–2012, this paper studies the impact of public health expenditure on the infant mortality rate (IMR), after controlling for other relevant covariates like political competition, per capita income, female literacy, and urbanisation. We find that public expenditure on health care reduces the IMR. Our baseline specification shows that an increase in public health expenditure by 1 per cent of state-level net domestic product is associated with a reduction in the IMR by about nine infant deaths per 1000 live births. We also find that political competition, female literacy and urbanisation reduce the IMR.

Sustainability and Development

Sustainable development requires that per capita welfare does not decline over time. The minimum condition is ensuring that any depletion of natural capital is compensated by reproducible and human capital, so that the value of the aggregate stock does not decrease. Meeting this condition is problematic if natural capital includes ecosystems, which not only provide unique goods and services but are also prone to irreversible conversion and abrupt collapse. Net domestic product accounting rules for the depreciation of the total stock of reproducible, human, and natural capital of an economy can be extended to incorporate the direct benefits provided by ecosystems. They also can integrate any capital revaluation that occurs through ecosystem restoration and conversion and the threat of irreversible collapse. These approaches confirm the economic interpretation of sustainability as nondeclining welfare. They can also be used to estimate the changes in the value of ecological capital due to economic activity.

Recession to Resilience : The Indian Experience in Regional Perspective

The present research, using the state level net domestic product (NDP) data, reviewed the growth experiences of India in terms of the relative performance of her state economies and their relative positions within the country's landscape during the pre-recessionary and post-recessionary period. The analysis revealed that the global recession of 2008 affected almost all state economies in India, though its impact was uneven. Services sector weathered the crisis much better than manufacturing and agriculture sectors because of which the economy firmly entered the recovery path. However, the role and importance of manufacturing in rebounding to recover the economy from the disruptive change of recession is most evident from the findings. The study concluded that emerging economies like India should not bypass manufacturing with services for ensuring further bounce back in the near future and long run sustainability thereafter.

Sources of Growth in Punjab and Haryana Economies vs. India: Evidence from Translog Production Function Analysis

Using time series data spanning over the period 1980-81 to 2009-10, the present study aims at analysing the sources of growth in Punjab and Haryana states vis-a-vis the overall Indian economy at the aggregated/ disaggregated level. The objective was accomplished through the estimation of translog production function for the three economies at both individual and pooled levels. The analysis was carried out with net domestic product as output, and capital, labour and energy as the three inputs. As per the main findings, output has been more responsive to relative changes in energy consumption (rather than capital and labour) in majority cases, thereby suggestingthe need for more attention to this factor (i.e., energy) for accelerated growth. As far as the rate of technical progress is concerned, Haryana state (as also the overall Indian economy) was observed to have registered positive growth, while Punjab, on the contrary, has experienced a decay. Therefore, concerted efforts need to be made (say, through consolidation of investment on physical and social infrastructure, and R & D) to give a fillip to the rate of technological progress, particularly in the laggard province of Punjab so as to make it keep pace with the other economies. Results from the panel data estimation approach have indicated that rate of acceleration in technical progress was the highest in aggregated tertiary sector, and the lowest in secondary sector which, however, is not a very conducive sign when viewed from the angle of strengthening the production base of the economies. Further, as per computation of the elasticities of substitution, labour could be substituted (in majority sectors) for capital as well as energy to a limited extent. Nevertheless, capital and energy have to be used jointly in the production process, as these happened to be complementary to each other.

The role of financial development in economic growth: empirical evidence from Indian states

Purpose – The purpose of this paper is to examine the relationship between financial development and economic growth in Indian states using annual data from 1993 to 2012. Design/methodology/approach – The stationarity properties are checked by Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests. The study employed the Pedroni’s panel co-integration test to examine the existence of long-run relationship and the coefficients of co-integration are examined by fully modified ordinary least squares. The short term and long-run causality is checked by panel granger causality. Findings – The co-integration test confirms a long-run relationship between financial development and economic growth for Indian states. The results support the supply leading hypothesis and highlight the importance of financial development in economic growth in Indian states. The findings also indicate that bank-centric financial sector of India has the potential of economic growth through credit transmission. Research limitations/implications – The present study recommends for appropriate reforms in financial market to attain economic growth in India. The findings will be useful for India’s policymakers in order to maintain the parallel expansion of financial development and economic growth. Originality/value – Till date, there is no study that includes all 28 states in analyzing the role of financial development in economic growth for Indian economy by applying latest econometric techniques. Further, the study uses gross domestic state product instead of net domestic state product as proxy for economic growth because of the presence of different depreciation rates.

The Protective Value of Estuarine and Coastal Ecosystem Services in a Wealth Accounting Framework

Recent concern over the loss of estuarine and coastal ecosystems (ECEs) often focuses on an important service provided by these ecosystems, their role in protecting coastal communities from storms that damage property and cause deaths and injury. Certain ECEs, especially mangroves, marshes, seagrasses and near-shore coral reefs, may significantly reduce storm surges through attenuating waves. This function is key to the protective value of ECEs, which is used as a basis for coastal restoration efforts worldwide. In a wealth accounting framework, net domestic product (NDP) should be adjusted for the direct benefits provided by the current stock of this restored ecological capital but not for their indirect contributions in terms of protecting or supporting economic activity, property and human livelihoods. If ecosystem restoration leads to the creation of new ecological landscape, including transforming developed land back to ecological capital, then NDP must be further modified to reflect any capital revaluation that occurs. Both the current benefits of restoration and any capitalized land values must be adjusted if there is a risk of restoration failure. These issues encountered in a wealth accounting approach to the protective value of ECEs is illustrated with reference to the case of marsh creation in Louisiana, USA, in light of the 2012 Louisiana Coastal Master Plan.

Socio-Economic Characterization of Rural Households: A Village Level Analysis in Bihar, India

The alleviation of poverty has consistently been one of the chief objectives of Indian policy. The country‘s modern history contains myriad examples of discussion on this topic as far back as 1901. After India achieved independence from Great Britain in 1947, it launched a series of development programmes under various Five Year Plans which contain some kind of poverty eradication or social justice components. The consideration of economic policies vis-a-vis their impact on the poor highlights a continued emphasis by Indian policy makers on poverty alleviation.During the mid to late 1990‘s, the country experienced tremendous economic growth, particularly in industrial and service sectors. Its GDP grew at close to 6 percent annually during this period. Many individuals have suggested that poverty fell considerably during 1990‘s due to trickle down effects. Others do not find evidence that the economic growth strategy employed by Indian Government has reached broad segments of the population.In India, Bihar is amongst the poorest states with poverty incidence of 41.4 per cent. Per capita net domestic product has been estimated to be $ 446 for Bihar which is about one –third of the corresponding national average ($ 1220) and less than one-fourth of Haryana ($ 2052), one of the richest states in India (Government of Bihar, 2011). There has not been any significant influence of the agricultural development and poverty alleviation programmes on reducing poverty incidence. It reflects that strategies adopted under various rural development programmes seem to be inappropriate in the Bihar context. The most of the programmes aimed at improving the economic status of poor households, only a few attempted at improving their human capital (i.e., education, health, housing, social participation, etc.). This might be the reason for ineffectiveness of these programmes on alleviating poverty during the last three decades. The present study is an attempt to understand the village level realities in the overall development scenario of the state, which has been unfortunately termed as poverty hot-spot by many.

Economic Growth of India in Post Independence Era

This paper empirically examined the economic growth of India in post independence era i.e. 1951–2013. The major indicators to measure the economic growth of any country are GDP (Gross Domestic Product), PCI (Per Capita Income), NI (National Income), GDS (Gross Domestic Savings), GDCF (Gross Domestic capital Formation) etc. GDP helps us to understand the structure and level of an economy. Capital formation leads to more production, employment, per capita income and economic growth of the country. With the help of data on net domestic product, we can know the growth rate of economy, importance of different sectors, savings and investment aspect of an economy. In India, NI is increased up to Rs. 10056523 crores in the year of 2013–14 while it was only Rs. 340 in 1867–68, Rs. 1067 in 1913–14, Rs. 2364 in 1921–22 and Rs. 6234 in 1945–46 in pre-independence period under the British rule. After independence, Indian economy is growing faster but in comparison to other countries like USA, Japan, UK, China and Sri Lanka; India is still a developing economy. Indian economy has US $1550 per capita income on exchange rate basis according to world development report, 2014.