Showcasing the Inequality behind the Economic Productivity
DOI:
https://doi.org/10.18662/lumeneas/6.1/26Keywords:
productivity, measurement, indicator, callisthenic productivityAbstract
It has been a while since we have started understanding the effects of our economic activity. But are we really doing anything about it? In this paper, we aim at introducing and presenting a new indicator meant to tell the story of economic productivity beyond its economic implications. The construction of the new indicator starts by computing national economic productivity as a sum of labor and capital productivity. The national economic productivity is introduced in a multiplicative equation with reversed GINI coefficient, the human development index and a ratio of biocapacity and ecological footprint of consumption. The reversed GINI coefficient corrects the value of the national economic productivity by accounting for the inequality of the distribution of income. The human development index captivates the quality of life beyond the distribution of income with areas like education and health. The ratio between the biocapacity and the ecological footprint of consumption showcases whether the country can ensure its sustainability by accounting its capacity to produce all that it needs to sustain the life of the citizens and to store and/or to eliminate the production residues. The results are quite surprising, painting a completely different picture from what we know from the economic reports.
References
Emsina, A. A. (2014). Labour productivity, economic growth and global competitiveness in post-crisis period. Procedia - Social and Behavioral Sciences, 156, 317-321. http://dx.doi.org/10.1016/j.sbspro.2014.11.195
Fagerberg, J., & Srholec, M. (2007). The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind. World Development, 35(10)|, 1595-1620. http://dx.doi.org/10.1016/j.worlddev.2007.01.004
Jivan, A. (2014). Productivité et servicité [Productivity and service]. Economies et Societés, 48(4), 579-599.
Lall, P., Featherstone, A. M., & Norman, D. W. (2002). Productivity growth in the Western Hemisphere (94): the Caribbean in perspective. Journal of Productivity Analysis, 17, 213-231. https://doi.org/10.1023/A:1015008020851
Lall, S. (2001). Competitiveness Indices and Developing Countries: An Economic Evaluation of the Global Competitiveness Report. World Development, 29(9), 1501-1525. https://doi.org/10.1016/S0305-750X(01)00051-1
Podobnik, B., Horvatic, D., Kenett, D. Y., & Stanley, H. E. (2012). The competitiveness versus the wealth of a country. Scientific Reports, 2(1), 678. http://dx.doi.org/10.1038/srep00678
Stiglitz, J. E, Sen, A., & Fitoussi, J. P. (2008). Report by the Comission on the Measurement of Economic Performance and Social Progress. Eurostat Documents. https://ec.europa.eu/eurostat/documents/8131721/8131772/Stiglitz-Sen-Fitoussi-Commission-report.pdf
Stiglitz, J. E. (2013). Preţul inegalităţii [The price of inequality] (S. Nistor, Trans.). Publica Publishing House. (Original work published in 2012).
Xia, R., Liang, T., Zhang, Y., & Wu, S. (2012). Is global competitive index a good standard to measure economic growth? A suggestion for improvement. International Journal of Services and Standards, 8(1), 45-57. http://dx.doi.org/10.1504/IJSS.2012.048438
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 The Authors & LUMEN Publishing House
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant this journal right of first publication, with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work, with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g. post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g. in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as an earlier and greater citation of published work (See The Effect of Open Access).
LUMEN EAS Journal has an Attribution-NonCommercial-NoDerivs
CC BY-NC-ND
