CORRELATION OF GDP AND NATIONAL WEALTH AS KEY INDICATORS OF COUNTRY'S ECONOMIC DEVELOPMENT

Array

Authors

  • I. Yu. Fufalko Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Finance, Shevchenko Str., 57, Ivano-Frankivsk, 76018

DOI:

https://doi.org/10.15330/apred.1.14.161-169

Keywords:

National wealth, gross domestic product, natural capital, industrial capital, human capital

Abstract

The article investigates the economic importance of the key indicators of the national accounts system as a gross domestic product (GDP) and national wealth and their role in assessing the country`s economic situation. National wealth is defined as the aggregate of natural, industrial (industrial) and human capital in one forty countries of the world. Interdependence and interdependence between these indicators of economic development are analyzed. The main factors influencing the efficiency and productivity of the use of national wealth are determined.

To measure the effectiveness of using the country’s national wealth, an economic indicator such as ROE is calculated by dividing GDP into national wealth adjusted for the value of net foreign assets. Among the 140 countries in the world, the average level of use of national wealth in the TOP-10 most developed countries is 6.98%, in the top-40 - 7.08%. The average level of national wealth productivity in countries with a 40 to 90 rating position is 7.92%, while in the 50 poorest and least developed countries, it stands at 5.37%.

 

Author Biography

I. Yu. Fufalko , Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Finance, Shevchenko Str., 57, Ivano-Frankivsk, 76018

аспірант

References

1. Fedorenko, V., Didenko, O., Ruzhens`kii, M., and O. Itkin. Political economy, Alerta, 2008.
2. Bulatov, A., Bartenev, S., Sokolova, O., and V. Supian. Microeconomics, Yurait, 2016.
3. Lange, Glenn-Marie, Quentin, Wodon, and Kevin Carey, eds. The Changing Wealth of Nations 2018: Building a Sustainable Future, World Bank, 2018. doi: 10.1596/978-1-4648-1046-6.
4. Shums`ka, S. “Ukrainian national wealth in measure of SNA indicators.” Finances of Ukraine, no.4, 2012, pp 27-40.
5. Chechel, O. “Basic criteria of the population`s welfare.” Investments: practice and experience, no.1, 2011, pp. 82-85. Vernadsky national lsbrary of Ukraine, nbuv.gov.ua/UJRN/ipd_2011_1_23. Accessed 1 Mar. 2018.
6. Kuklin, V., and A. Sirenkaia. “Wealth and social development of the nation.” Ukrainian sociological journal, no.1–2, 2016, pp. 42-57.
7. Bobuh, I. “National wealth as the basis for Ukraine's financial development.” International scientific conference “Modernization of the Ukrainian public sector: opportunities, challenges and restrictions of the fiscal decentralization”, 2016, pp. 43-47.
8. Shutaieva, O. “Structure and main approaches to human capital assessment.” Culture of the Black Sea people, vol. 2, no. 278, 2014, pp. 31-34.

Downloads

Published

2020-02-28

Issue

Section

Innovative-investment models of economic development of Ukraine