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GROSS DOMESTIC PRODUCTAND
SECTORS O F AN ECONOMY
Abhishek Dubey Johny Jose
Kumar Harsh
Lahar SolankiSubho Banerjee1Wednesday 11 January 12
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GROSS DOMESTIC PRODUCTAn Introduction
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W HAT IS GDP?
GDP represents the total monetary value of all goods andservices produced by a country over a specic time period.
Similar to the income statement of a company.
GDP is a measure of economic production and growth.
GDP per capita , is the measure of GDP taking intoconsideration the size of the nation (resident population).
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HOW IS GDP C ALCULATED? Basic approach (Product Approach)
Two methods -
Income Approach - Adding up what everyone has earned.
Expenditure Approach - Adding up what everyone hasspent.
International Standard for measuring GDP contained inSystem of National Accounts
GDP = Pvt. Consumption + Gross Investment + Government Spending+ (Exports - Imports)
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PROBLEMSASSOCIATED W ITH GDP
Wealth Distribution - Does not account for variance inincome of demographic.
Non Market Transactions - Open Source Software. Estimatedcost to develop Linux for servers is 5.3 billion dollars.
Asset Value - GDP is similar to an income statement of acompany.
Unorganized Economy - Underground Economy / SubsistenceProduction / Non-monetary Economies
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SECTORS O FTHE ECONOMY
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The economy is divided into three sectors -primary, secondary and tertiary .
Primary Sector of the Worlds Economy 1000 years
ago...
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Primary Sector - Agriculture
Economic theory says developed countries move away from predominantly agrarian economies.
Secondary Sector?
Primary Sector of the Worlds Economy 100 years ago...
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Secondary Sector - Manufacturing.
Manufacturing comes into prominence with the Industrial
Revolution and leads has several socio-economic effects
Colonization
Birth of Capitalism / Socialism / Communism
Tertiary sector?
Predominant sector of economy today...
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The stage of development of a country can be gauged by thepredominant sector of the economy.
China vs India - Manufacturing vs Service
Similarities between Factors of Production and the sectors of theeconomy
Land - Agriculture
Labour - Manufacturing.
Capital - Services.
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US Government Income from Nationalized Services
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DATA
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Text
Gross GDP Growth from 1960 - 2010
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56%15%
29%
Agriculture Manufacturing Services
Division of GDP among sectors of the IndianEconomy(1950-51)
GDP - Rs. 236000 cr
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33%
25%
42%
Agriculture Manufacturing Services
Division of GDP among sectors of the IndianEconomy(1990-91)
GDP - Rs. 1194000 cr
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17%
26%
57%
Agriculture Manufacturing Services
Division of GDP among sectors of the IndianEconomy(2009-10)
GDP - Rs. 4807000 cr
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0
20
40
60
80
United States EU Japan Nigeria China
Agriculture Manufacturing Services
Percentage of GDP in various sectors of the economy 21Wednesday 11 January 12
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GAPMINDER
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http://www.gapminder.org/http://www.gapminder.org/http://www.gapminder.org/http://www.gapminder.org/8/3/2019 GDP Sectors
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CLOSING R EMARKS23Wednesday 11 January 12
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FUR THER R EADINGAll Images are links to relevant articles
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http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.investopedia.com/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/http://www.worldbank.org/https://www.cia.gov/library/publications/the-world-factbook/https://www.cia.gov/library/publications/the-world-factbook/http://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1957281,00.htmlhttp://www.time.com/time/world/article/0,8599,1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