GDP density is a measure of economic activity by area. It is expressed as gross domestic product per square kilometer and can be calculated by multiplying GDP per capita of an area by the population density of that area. Amongst other uses it demonstrates the effects of geography on economy. [1]
GDP density refers to the distribution or intensity of Gross Domestic Product (GDP) within a particular area or population. GDP density could be interpreted as a measure of economic activity or output relative to the size of a region or population, often expressed as GDP per capita or GDP per unit of area.
The GDP per capita is a commonly utilized indicator to assess a nation's economic performance. It is calculated by dividing the total value of products and services produced in a nation during a given time period by the average population of that nation. [2] This measure, which is frequently used to compare the economic success of various countries, sheds light on the average economic output per person in a specific nation. GDP per capita typically denotes a higher standard of life because it shows that the nation's citizens have more resources and GDP density
GDP per unit area refers to the geographical distribution of Gross Domestic Product within a country. It analyzes how economic output is spread across different regions, provinces, states, or territories within a nation. Understanding GDP geographic distribution is essential for policymakers, businesses, and researchers as it provides insights into regional disparities in economic development and helps identify areas that may require targeted interventions or investment. Policymakers can identify economically underperforming regions and may need to implement tailored policies to promote growth and development by analyzing the geographic distribution of GDP. By identifying the areas of concentrated economic activity, it also assists firms in making well-informed decisions regarding the allocation of resources and market prospects. Additionally, trends of urbanization, economic resiliency, and regional growth are studied by scholars using geographic GDP density data.
Academic discussions have highlighted two significant reasons why typical households might not benefit proportionally from economic growth. These reasons revolve around discrepancies between GDP per capita and median household income, shedding light on challenges in accurately measuring and interpreting economic indicators. [3] The first reason centers on differences in measurement between GDP per capita, derived from national accounts, and median household income, based on household surveys. Despite efforts by organizations like the OECD and EU to align income measures with national accounts concepts, disparities persist due to methodological variations and mismeasurement. Empirical studies reveal substantial disparities between mean per capita income from national accounts and household surveys across various countries. The second reason gaining attention is the widening income inequality, where a significant portion of national income growth concentrates at the top of the income distribution. This trend results in minimal increases in the median income. Empirical studies, primarily focused on countries like the USA and the UK, underscore the impact of income inequality on household income dynamics.
Geographical detectors have been used, especially in rural poverty contexts, to systematically measure the individual and interacting influences of numerous factors on changes in GDP density. This investigation has found the ideal qualities of important variables that support GDP density growth. [4] Furthermore, a better comprehension of the GDP density differentiation mechanism in rural poverty has been gained. Sufficient reasons for changes in GDP density in rural poverty have been established, based on variables like elevation, average yearly temperature, land use, normalized differential vegetation index (NDVI), and distance to main roadways. Crucially, it has been noted that these impact factors have interactive impacts on GDP density, with synergistic effects frequently producing nonlinear consequences and mutual enhancement.
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period by a country or countries. GDP is more often used by the government of a single country to measure its economic health. Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator.
In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish, ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.
Per capita income (PCI) or average income measures the average income earned per person in a given area in a specified year.
The United States is a highly developed/advanced mixed economy. It is the world's largest economy by nominal GDP; it is also the second largest by purchasing power parity (PPP), behind China. It has the world's seventh highest per capita GDP (nominal) and the eighth highest per capita GDP (PPP) as of 2022. The U.S. accounted for 25.4% of the global economy in 2022 in nominal terms, and about 15.6% in PPP terms. The U.S. dollar is the currency of record most used in international transactions and is the world's reserve currency, backed by a large U.S. treasuries market, its role as the reference standard for the petrodollar system, and its linked eurodollar. Several countries use it as their official currency and in others it is the de facto currency.
The standard of living in the United States is high by the standards that most economists use, and for many decades throughout the 20th century, the United States was recognized as having the highest standard of living in the world. Per capita income is high but also less evenly distributed than in most other developed countries; as a result, the United States fares particularly well in measures of average material well being that do not place weight on equality aspects.
Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. The most common example is the (aggregate) labour productivity measure, one example of which is GDP per worker. There are many different definitions of productivity and the choice among them depends on the purpose of the productivity measurement and data availability. The key source of difference between various productivity measures is also usually related to how the outputs and the inputs are aggregated to obtain such a ratio-type measure of productivity.
In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes economic inequality which is a concern in almost all countries around the world.
The standard of living in India varies from state to state. In 2021, extreme poverty was reduced to 0.8% and India is no longer the nation with the largest population living in poverty.
Development geography is a branch of geography which refers to the standard of living and its quality of life of its human inhabitants. In this context, development is a process of change that affects peoples' lives. It may involve an improvement in the quality of life as perceived by the people undergoing change. However, development is not always a positive process. Gunder Frank commented on the global economic forces that lead to the development of underdevelopment. This is covered in his dependency theory.
Household income is an economic standard that can be applied to one household, or aggregated across a large group such as a county, city, or the whole country. It is commonly used by the United States government and private institutions to describe a household's economic status or to track economic trends in the US.
Personal income is an individual's total earnings from wages, investment interest, and other sources. The Bureau of Labor Statistics reported a median weekly personal income of $1,037 for full-time workers in the United States in Q1 2022. For the year 2020, the U.S. Census Bureau estimates that the median annual earnings for all workers was $41,535; and more specifically estimates that median annual earnings for those who worked full-time, year round, was $56,287.
In economics, gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy. "Gross value added is the value of output minus the value of intermediate consumption; it is a measure of the contribution to GDP made by an individual producer, industry or sector; gross value added is the source from which the primary incomes of the System of National Accounts (SNA) are generated and is therefore carried forward into the primary distribution of income account."
Spatial inequality refers to the unequal distribution of income and resources across geographical regions. Attributable to local differences in infrastructure, geographical features and economies of agglomeration, such inequality remains central to public policy discussions regarding economic inequality more broadly.
Income in India discusses the financial state in India. With rising economic growth and prosperity, India's income is also rising rapidly. As an overview, India's per capita net national income or NNI was around 9.97 lakh rupees in 2022. The per-capita income is a crude indicator of the prosperity of a country. In contrast, the gross national income at constant prices stood at over 128 trillion rupees. The same year, GRI growth rate at constant prices was around 6.6 percent. While GNI and NNI are both indicators for a country's economic performance and welfare, the GNI is related to the GDP or the Gross Domestic Product plus the net receipts from abroad, including wages and salaries, property income, net taxes and subsidies receivable from abroad. On the other hand, the NNI of a country is equal to its GNI net of depreciation.
In China today, poverty refers mainly to the rural poor. Decades of economic development has reduced urban extreme poverty. According to the World Bank, more than 850 million Chinese people have been lifted out of extreme poverty; China's poverty rate fell from 88 percent in 1981 to 0.7 percent in 2015, as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms, which still stands in 2022.
This article includes several ranked indicators for Chile's regions.
Brazil has been tackling problems of income inequality despite high rates of growth. Its GDP growth in 2010 was 7.5%. In recent decades, there has been a decline in inequality for the country as a whole. Brazil's GINI coefficient, a measure of income inequality, has slowly decreased from 0.596 in 2001 to 0.543 in 2009. However, the numbers still point to a rather significant problem of income disparity.
Poverty in South Korea has been in drastic decline since the mid-20th century, particularly the absolute poverty rate. Relative poverty was also in decline until the late 1990s, rose in the aftermath of the Asian Financial Crisis, and has been in decline since the 2010s. While only about 2% of South Koreans are affected by absolute poverty today, about 14-15% of these 2% are elderly and are affected by relative poverty. Elderly relative poverty has been in consistent decline since 2011, according to the OECD.
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