Calculation of Conditionality of Macroeconomic Indicators In the Case of Globalization (On the example of GDP of Georgia)
Journal Title: Globalization and Business - Year 2016, Vol 2, Issue 2
Abstract
the important macroeconomic indicator-Calculation of the Gross Domestic Product (GDP) is characterized with some systematic lacks, although having its progress too: First of all, there is not pointed out such quality parameters, which will help complete satisfaction of individual demands of the population that will be expressed in the growth of consumption and welfare, even in the conditions of reduced labor costs. The second thing is, that there are not reflected in the household labor costs of family members, that they have to create their own consumer goods and to improve their welfare condition. The Third thing is, that it is artificially taken into the housing optional rent, which represents not the results of the current year labor activities, but the indicator of deprecation of capital goods created in the previous period. Accordingly, for perfection of the methodology of GDP calculation, it is necessary to minimize such conditionality. There is proposed in the article the methodology of calculation of value of homemakers’ labor in the household, according to which the Georgian GDP should be raised by 1/4. At the same time, the housing optional rent (3.3%) should be deducted from the GDP. After adding and deducting such components, the corrected GDP is called “expanded GDP“ by the Author („GDP +“).
Authors and Affiliations
Joseph Archvadze
Keywords
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