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An overview of the regional averages of GDP per person for developing countries, measured in comparable international dollars as well as population in 2008 ( [link] ), shows that the differences across these regions are stark. As [link] shows, nominal GDP per capita in 2012 for the 581.4 million people living in Latin America and the Caribbean region was $9,190, which far exceeds that of South Asia and sub-Saharan Africa. In turn, people in the high-income nations of the world, such as those who live in the European Union nations or North America, have a per capita GDP three to four times that of the people of Latin America. To put things in perspective, North America and the European Union have slightly more than 9% of the world’s population, but they produce and consume close to 70% of the world’s GDP.

Gdp per capita in u.s. dollars (2008)

This image is a colored map of the world with only a few areas having high GDPs.
There is a clear imbalance in the GDP across the world. North America, Australia, and Western Europe have the highest GDPs while large areas of the world have dramatically lower GDPs. (Credit: modification of work by Bsrboy/Wikimedia Commons)
(Source: http://databank.worldbank.org/data/home.aspx)
Regional comparisons of nominal gdp per capita and population in 2013
Population (in millions) GDP Per Capita
East Asia and Pacific 2,006 $5,536
South Asia 1,671 $1,482
Sub-Saharan Africa 936.1 $1,657
Latin America and Caribbean 588 $9,536
Middle East and North Africa 345.4 $3,456
Europe and Central Asia 272.2 $7,118

Such comparisons between regions are admittedly rough. After all, per capita GDP cannot fully capture the quality of life. Many other factors have a large impact on the standard of living, like health, education, human rights, crime and personal safety, and environmental quality. These measures also reveal very wide differences in the standard of living across the regions of the world. Much of this is correlated with per capita income, but there are exceptions. For example, life expectancy at birth in many low-income regions approximates those who are more affluent. The data also illustrate that nobody can claim to have perfect standards of living . For instance, despite very high income levels, there is still undernourishment in Europe and North America.

Economists know that there are many factors that contribute to your standard of living. People in high-income countries may have very little time due to heavy workloads and may feel disconnected from their community. Lower-income countries may be more community centered, but have little in the way of material wealth. It is hard to measure these characteristics of standard of living. The Organization for Economic Co-Operation and Development has developed the “OECD Better Life Index.” Visit this website to see how countries measure up to your expected standard of living.

The differences in economic statistics and other measures of well-being, substantial though they are, do not fully capture the reasons for the enormous differences between countries. Aside from the neoclassical determinants of growth , four additional determinants are significant in a wide range of statistical studies and are worth mentioning: geography, demography, industrial structure, and institutions.

Questions & Answers

Don't damend work in inflation
Mishael Reply
conceptand variable of macro economics
Bittu Reply
Hi
Jafta
hi
Prashant
hello
hello
George
macro economics is the study of general factors in an economy.
George
what is fiscal policy?
talukder
fiscal policy refers to the use of government spending,taxation and borrowing to affect economic activity ,monetary policy on the other hand, entails the manipulation of interest rates.
Rakgadi
A lots of thanks
talukder
you are welcome
Rakgadi
Very informative talukder
Jafta
yes Jafta
talukder
So scarcity will always be a problem, is something that can't be solved due to specialization of labor and choice?
Jafta
yes right Jafta
talukder
good definition Jata♥♥
talukder
how are you all
Nurul
well
Asma
good
talukder
Kindly explain or give example of Voluntary unemployment.
Rakgadi
when unemployment doesn't choose a accept job at wage of rate
talukder
Thanks Talukder
Rakgadi
hi
kura
macroeconomics is not too hard
Omar
wow Omar, ur so helpful lol🤣
Alex
good ho every one
Fahad
what's up guys■■
Fahad
I want someone to tell me everything about the inflation and and hyber inflation is plz
Lolla
dot US Army higher South Korean citizen for the US base South Korea and pay them 50000 as a result
farzana Reply
What is production possibility frontier
adewale Reply
Production possibility frontier is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The production possibility curve is frontir that all inputs are used efficiently.
.
what are some examples of a monetary policy?
Viccey Reply
expansionary policy contractionary policy
Steve
what is scarcity
van Reply
scarcity is like having so much of goods and services to access and you want them
Steve
Yes
Saraswati
how to calculate GDP
Steve
Gdp =c+I +nx +G
Saraswati
GDP=rent+interest+wages and salaries+profit
adu
what are the assumptions of the marginal utility theory ?
Diann
GDPfc=GDI+stock dep-stock app+- residual errors
Diann
marginal cost and marginal benefits
Racheal Reply
what is unemployment
Nazer Reply
The total number of people in the labor force who are willing to work and actively looking for a job but cannot find one.
Bene
Heckchers Ohlin theory of International trade
Lal Reply
but if I may ask what brings this poverty in existence and how can such actions be deminish in our generation
Philemon Reply
Poverty comes from many factors, ranging from very low income for the households sector (purchasing power is low), basic needs such as safe drinking water, lack of sustainable development goals (roads, agriculture, technology, power, etc), business sector is poor, etc
Hadji
Such action can be diminished by effectively and efficiently using the four (4) factors of production. Land, Labor , Capital and Technology.
Hadji
Poverty - Increase in the cost of living without subsequent increase in the amount of minimum wage. Poverty can be reduced extremely if the minimum wage equals or equals more than the cost of living.
harmony
land labour capital and organisation factors of production
divya
what are positive and normative statements
Alethia Reply
p
Mohd
positive is realistic normative is imaginary
Prashant
give basic idea about India's national income
Maloy Reply
what are the sources of recessions and booms
Zweli Reply
A few years ago, Ama paid $500 to put together a record collection. Today she sold her albums at a garage sale for $100. how does the same affect GDP?
teresa Reply
It saves time its creates more employment
Gold Reply
Scarcity means human wants exceeds the resources needed to satisfy them 1. Limited resources 2. Numerous human wants
Gold
Scarcity means shortage!!!
Lewis
Gold you're knowlwgist bro keep going lion
Moha
hmm am fresh here oh
Andy
Being newest means u have it all!!!
Lewis
where you from university of malakand.or where are you.
Naeemuddin
What is mean by small open economy ?
Gecho

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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