case study on International Differences in GDP And The Quality of Life

2. Overview
What is GDP ?
Formula of GDP
What is Quality of life ?
Case Study
Analysis

3. What is GDP…?
• “GDP is the market value of all final goods and services
produced within a country in a given period of time.”
• GDP is equal to the sum of the value added at every stage of
production (the intermediate stages) by all the industries
within a country, plus taxes less subsidies on products, in the
period

4. Formula of GDP
GDP = C + I + G + NX
• Where :
C : Consumption
I : Investment
G : Government spending
NX : Net Exports (Export - Import)

5. Quality of Life
• The term quality of life is used to evaluate the general
well-being of individuals and societies.
• Quality of Life is the product of the interplay among
social, health, economic and environmental
conditions which affect human and social
development.

7. Case Study
• Rich and poor countries have vastly different levels of GDP
per person. If the large GDP leads to higher standard of living,
than we should observe GDP to be strongly correlated with
various measures of life.
• Measures of the quality of life…
 Real GDP per person
 Life Expectancy
 Adult Literacy
 Internet Usage

8. GDP and Quality of Life
Country Real GDP per Life Adult Internet
Person (2009) Expectancy Literacy (% ) Usage (%)
United State 45,934 78 99 77.3
Germany 34,388 79 99 79.1
Japan 32,554 83 99 78.2
Mexico 13,609 76 97.9 27.2
Russia 14,913 66 99.5 42.8
Brazil 10,499 72 90 37.8
China 6,778 73 93.3 31.6
Indonesia 4,151 71 92 12.3
India 3,015 65 66 6.9
Pakistan 2,683 64 54.2 11.1
Nigeria 2,274 47 72 28.9
Bangladesh 1,487 60 53.5 0.3

9. Analysis
The twelve of the world’s most populous countries ranked in order
of GDP per person.
In reach countries, such as United Nations, Germany and Japan,
people are expected to live more than 80 years of life, almost all
can read and right and almost more than 75% of people uses the
internet
In poor countries, such as Pakistan, Nigeria, Bangladesh, People
are expected to live only around 60years,

10. Analysis
• Only half of the population is literate and internet uses is very
less.
 Countries with low GDP per person tends to have more
– infant with low birth weight,
– higher rates of infant mortality,
– higher rates of maternal mortality,
– higher rates of child malnutrition,
– and less common access to safe drinking water.

11. Analysis
This countries also tend to have fewer
– Television
– Telephones
– Paved roads
– Households with electricity
 International data leaves no doubt that a nation’s GDP is
closely associated with its citizens’ standard of Living.