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What are the Key Measures of Economic Development?

 What are the Key Measures of Economic Development?

There are many considerations when it comes to measuring economic development; however, market characteristics, signs of financial development, and social factors are the key measures of economic development. What is the importance of the measures of Economic Development? It is like asking why do we measure or why we need measurements? We need measurements of everything; to evaluate, research, and improve different elements of our life. Economic measures are important because they tell us whether an economy is growing, helping its citizens to get an improved quality of life, and becoming stable. Without these measures, it would be hard for nations to identify different sectors that are lacking economic growth, as well as regions where their economic climates need work. Let's talk about some important indicators of economic development.
Key Measures of Economic Development
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Key Measures of Economic Development

  • Gross national product per capita (signs of financial development)
  • Social factors
  • Market Characteristics
  • And more

Gross National Product (GNP) and other characteristics of economic growth

Gross national product or GNP per capita is one of the keys as well as the broad measures of economic development. It is the value of the goods (food, houses, car, and more) and services (medical and legal fees) generated or produced in a country in 365 days (one year). 
Why this measure is important in evaluating the economic development? 
Getting exact value of finished goods and services means getting straight indicators of a nation's developing economy. However, other indicators of growth are also important to consider such as capital investment in infrastructure, rates of financial activity, and increasing consumption. Communications and interactions with trade partners of a country, such as agreements and treaties are likewise evaluated to get GNP report.
© Akhil Sharma  | AnythingRelated.com | All Rights Reserved


Please note that GNP and GDP are somehow related terms, but both of these terms are different. GNP concentrates on the final value produced from goods and services in one year in a nation, while GDP is about the final value of goods produced within a nation.
© Akhil Sharma  | AnythingRelated.com | All Rights Reserved

Social Factors

The main factors besides the hallmarks of economic growth that affect economic development are social ones which are also indicators of quality of life. The quality of life indicators are the most important as well as crucial measures of economic development. Economic experts usually look at unemployment ratios, literacy rates, infant death rates, life expectancy, and more to get the social characteristics of economic growth. In fact, happiness and satisfaction surveys can help evaluate the measure of economic development. Not only experts, but a common man can also evaluate social indicators of economic development. Other factors can include, westernization, global acknowledgement, and distribution of wealth in that country.
© Akhil Sharma  | AnythingRelated.com | All Rights Reserved

Market characteristics

Other measures of economic growth incorporate market characteristics. Workforce structure is one factor. If workers or employees are not handling high skill tasks that require special training or professional level of expertise, then it is an indication of low economic growth. On the other hand, highly qualified people or people with advanced studies show that the economy of that nation is improving. The correlation between innovation and economic growth is also an indicator of a stronger economy, which I will discuss very soon in future posts.
© Akhil Sharma  | AnythingRelated.com | All Rights Reserved

Other Measures

Advanced or improved infrastructure, cyber cities, a growing upper middle class, good health, and a few more things also indicate improving economic growth and development. Most of the Economic experts also consider regional differences as the measures of economic development because visible differences between urban and non-urban regions could destabilize the economy. GDP growth and unemployment ratio can easily tell you whether the economy of your country is improving or not. So next time any politician or economist states something about the growing economy of the country, you know how to verify it with these measures of economic development.
© Akhil Sharma  | AnythingRelated.com | All Rights Reserved



Comments

  1. Masshole MommyMay 30, 2016 at 3:37 PM

    I love that you showed a picture of Vegas. It's like a whole other world out there.

    ReplyDelete
  2. MikiHopeMay 30, 2016 at 4:36 PM

    I have a 2 yr accounting degree and yes, we did have to take economics. I have to admit it was my least favorite subject. I do agree that the above is how economies are determined to be growing or not. I just happen not to agree with a lot of it--statistics can and are manipulated for what the governments want you to think.

    ReplyDelete
    Replies
    1. AkhilJune 1, 2016 at 3:49 PM

      I agree with you on this; statistics can be manipulated

      Delete
  3. UnknownMay 30, 2016 at 6:16 PM

    This is such great information. I wonder what the USA's GNP growth is. With the ever growing government sanctions, I wonder if we are slipping.

    ReplyDelete
  4. PamMay 30, 2016 at 9:09 PM

    I took several economic classes in college and I remember going over this. Especially the GNP- that really sticks out in my mind.

    ReplyDelete
  5. Beauty BriteMay 30, 2016 at 9:34 PM

    Thank you for the interesting information. Love the pictures! I would love to travel to NY one day! We've been to Las Vegas a few times.

    ReplyDelete
  6. Taneja's BrideMay 30, 2016 at 10:31 PM

    I really enjoyed my micro and macro economics classes because it is a subject you deal with every single day of your life! Great post!

    ReplyDelete
  7. UnknownMay 30, 2016 at 10:50 PM

    This is a great informative post. I never really thought about the key measure of economical development until reading this.

    ReplyDelete
  8. CourtneyLynneMay 30, 2016 at 10:58 PM

    Quality of life is definitely a big one. Every area and region is different so what is growth in one area wouldn't be growth in another

    ReplyDelete
  9. AnonymousMay 31, 2016 at 12:27 AM

    Great post. You mention a lot of valid points. Thanks for sharing.

    ReplyDelete
  10. Sarah BaileyMay 31, 2016 at 4:20 AM

    This is really interesting - I sometimes wonder how real these statistics are so it is interesting to know what they are made up of.

    ReplyDelete
  11. XonMay 31, 2016 at 7:05 AM

    It's really good to learn more about economic growth and development. I never really knew the key measures, only that when an economy has more investments, it means more growth.

    ReplyDelete
  12. Mauie FloresMay 31, 2016 at 7:53 AM

    Thanks for sharing your ideas. It got me thinking about my country's economic development status.

    ReplyDelete
  13. MaryJane TauyanMay 31, 2016 at 9:15 AM

    wow i have to read this twice as I haven't been reading much things about like this topic at all. It is nice to know the key measure of economic gives me an idea of whats happening

    ReplyDelete
  14. UnknownMay 31, 2016 at 10:17 AM

    This is a good article for simple economics 101. I usually start from a country's current GDP development when I try to sort of "analyze" their community and way of living.

    ReplyDelete
  15. AnonymousMay 31, 2016 at 11:15 AM

    Great post explaining the economic development. I think a lot of people don't fully understand how such things work unless you specifically have your education in business or economics.

    ReplyDelete
    Replies
    1. AkhilJune 1, 2016 at 3:59 PM

      Yes, most of us don't even care about knowing the bits of economy because we think it is not our field of work. However, economy is a part of everyday life.

      Delete
  16. UnknownMay 31, 2016 at 12:07 PM

    While I studied economics in college, I've always been horrible at it. You just taught me a few things with this post. Very enlightening.

    ReplyDelete
  17. Lisa S.May 31, 2016 at 12:39 PM

    I took economics in college, but I forgot a bit of it. This post was a nice refresher.

    ReplyDelete
  18. UnknownMay 31, 2016 at 5:44 PM

    For me, one of the most key measures of economic is balanced. Having some advanced infrastructure and care to the ecology.

    ReplyDelete
  19. Liz MaysMay 31, 2016 at 7:22 PM

    It's like a block tower with supporting foundations needed in order to hold up the entire structure. There a lot of components.

    ReplyDelete
  20. NPCMay 31, 2016 at 7:32 PM

    Thanks for this informative post. I learned some new things. :)

    ReplyDelete
  21. UnknownMay 31, 2016 at 7:41 PM

    Thanks for sharing this, I now know what are the measures of economic growth so I will not be fooled.

    ReplyDelete
  22. blythe32June 1, 2016 at 2:56 AM

    This post is full of so much interesting information about economics. It's been so long since I took a class in the category, this was a great refresher.

    ReplyDelete
  23. Couponing in Central Florida!June 1, 2016 at 4:19 AM

    This was like a blast from the past. You brought back a ton of memories from economics class and sociology!

    -Mary

    ReplyDelete
  24. laborders2000June 1, 2016 at 4:28 AM

    Very informative post. As an educator, this is helpful for me as I have to teach economics.

    ReplyDelete
  25. Lisa RIosJune 1, 2016 at 6:52 AM

    Economic Development is such an important factor & this is such a great information to explain all the fact around it. Though many talk about it, I would say not many has even a basic knowledge of how they work.

    ReplyDelete
  26. mail4roseyJune 1, 2016 at 3:13 PM

    I agree with Robin, Vegas is it's own little world. This is a well put together post. I wish my teen was up to read it and comment. She's studying economic development in a class and she likes to discuss it. :)

    ReplyDelete
  27. stephanicketyJune 1, 2016 at 8:38 PM

    Great job explaining economic growth. There are just so many factors that play into it. My wish is that wages would start moving again and companies would stop sitting on piles of cash.

    ReplyDelete
  28. Casa Vilora InteriorsJune 2, 2016 at 6:40 AM

    This is great info. I grew up in a country that needs to get economics in order. I learned something new today

    ReplyDelete
  29. UnknownJune 2, 2016 at 8:33 AM

    This absolutely a great post and a very informative for us. So glad that you share this

    ReplyDelete
  30. Kelly HutchinsonJune 2, 2016 at 5:39 PM

    I was never one for the whole economic thing. I know that makes me seem shallow. Just not my cup of tea.

    ReplyDelete

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