Open Access Journal Article

Gross Domestic Products (GDP) is not a Proper Indicator of Measurement and Economic Power Comparison for Emerging Economies: A Judgement from International Distributions of Net Factor Income from Abroad

by Dong Qiu a  and  Yafei Wang b,*
a
School of Statistics, Jiangxi University of Finance and Economics, Nanchang, China
b
School of Statistics, Beijing Normal University, Beijing, China
*
Author to whom correspondence should be addressed.
JES  2023, 1; 1(1), 1; https://doi.org/10.58567/jes01010001
Received: 25 December 2022 / Accepted: 22 January 2023 / Published Online: 16 February 2023
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Abstract

Global distributions of net factor income from abroad (NFI) during 1990-2019 have witnessed that (1) the United States is the top one country accounting for 40% of surpluses of the global total, while a surge in China’s deficit with its GDP increase; (2) GDP growth in emerging economies has a price scissors with NFI deficits; (3) asymmetric NFI has covered up the severity of rich countries’ global arbitrages especially from emerging economies; (4) China’s economic power is exaggerated by the PPP-based GDP implemented by the World Bank. It concludes that (1) developing countries have paid for huge hidden cost for their emergence; (2) the statement of the United States suffering losses absolutely does not hold; (3) GDP is not a universal tool for measuring what matters. It suggests that (1) emerging economies countries should beware of the potential misleading of GDP on economic measurement and economic power comparison ; (2) GDP should be critiqued from the applicability perspective of economies’ types; (3) it is urgent to clarify some misjudgment and misleading concepts in the economic affairs surrounding the global value chain patterns; (4) the construction of national governance capacity in emerging economies should focus on “social infrastructure”, of which one of the important parts is an effective economic statistics system; (5) emerging economies should carry out the strategic layout of international economic statistics talents to enhance their soft powers.

Keywords: Gross Domestic Product (GDP); Net Factor Incomes from abroad (NFI); NFI Surplus; NFI Deficit; National Economic Power;
Copyright: © 2023 by Qiu and Wang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Qiu, D.; Wang, Y. Gross Domestic Products (GDP) is not a Proper Indicator of Measurement and Economic Power Comparison for Emerging Economies: A Judgement from International Distributions of Net Factor Income from Abroad. Journal of Economic Statistics, 2023, 1, 1. https://doi.org/10.58567/jes01010001
AMA Style
Qiu D, Wang Y. Gross Domestic Products (GDP) is not a Proper Indicator of Measurement and Economic Power Comparison for Emerging Economies: A Judgement from International Distributions of Net Factor Income from Abroad. Journal of Economic Statistics; 2023, 1(1):1. https://doi.org/10.58567/jes01010001
Chicago/Turabian Style
Qiu, Dong; Wang, Yafei 2023. "Gross Domestic Products (GDP) is not a Proper Indicator of Measurement and Economic Power Comparison for Emerging Economies: A Judgement from International Distributions of Net Factor Income from Abroad" Journal of Economic Statistics 1, no.1:1. https://doi.org/10.58567/jes01010001
APA style
Qiu, D., & Wang, Y. (2023). Gross Domestic Products (GDP) is not a Proper Indicator of Measurement and Economic Power Comparison for Emerging Economies: A Judgement from International Distributions of Net Factor Income from Abroad. Journal of Economic Statistics, 1(1), 1. https://doi.org/10.58567/jes01010001

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