The end of economic growth? A contracting threshold hypothesis
Data(s) |
15/09/2010
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Resumo |
This paper argues that GDP growth in both developed and developing countries has associated costs that can outweigh the benefits and thus reduce sustainable well-being. This conclusion is based upon the findings of empirical applications of the Genuine Progress Indicator (GPI) to a range of countries in the Asia-Pacific region. The studies conducted on seven Asia-Pacific countries indicate that, in the case of five of the seven nations, more recent GDP growth has reduced the sustainable well-being experienced by the average citizen residing within them. Moreover, the threshold point at which the costs of GDP growth outweigh the benefits appears to be contracting (i.e., occurring at a much lower per capita level of GDP). This paper therefore introduces a new contracting threshold hypothesis: as the economies of the Asia-Pacific region and the world collectively expand in a globalised economic environment, there is a contraction over time in the threshold level of per capita GDP. As a consequence, the threshold point confronting growth late-comers (i.e., developing countries) occurs at a much lower level of sustainable welfare than what wealthy nations currently enjoy. The consequences of this for developing countries are clearly significant and require a new approach to economic development. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Elsevier BV |
Relação |
http://dro.deakin.edu.au/eserv/DU:30033368/clarke-endofeconomic-2010.pdf http://dx.doi.org/10.1016/j.ecolecon.2010.06.007 |
Direitos |
2010, Elsevier B. V. |
Palavras-Chave | #GPI #economic growth #threshold hypothesis #Asia-Pacific region |
Tipo |
Journal Article |