Having seen in
some detail about GDP, let us move on to learn about Per Capita GDP.
To arrive at Per
Capita GDP, take the country’s gross domestic product (GDP) and divide it by
the total population of the country. In
a way, the total population of the country is a vital factor in calculating the
Per Capita GDP. For example, if the GDP
of two countries are same, the Per capita GDP, to be same, must have the same
population. On the other hand, if one country has a larger population, then,
the Per capita GDP of that country will be less compared with the other country
with a lesser population.
From this fact,
we can derive some more significant implications.
proceed, let us know that there are kinds of GDP like Nominal GDP and real GDP;
the real, the actual GDP and the potential GDP.
We shall look into them when we need in proper context.
Per capita GDP
reflects the relative performance of the countries. In other words, a higher
per capita GDP indicates relatively better performance of the country in the
sense that it has produced more and provided more services. In turn, it implies
that the country with a higher Per capita GDP has a higher standard of
living. People there are more
comfortable with access to all necessities for living.
productivity is taken as a measure of GDP. It talks about the productivity of
the workforce of the country in total. Economists, however, point out that to
assess the productivity competency of the workforce, the output every hour must
be taken into account. It does matter. If the workforce works 8 hours a day,
for example, and produces 100 products, it is a measure of its competency;
supposing the workforce of the same size of a different country works 6 hours a
day and produces 100 products means, that workforce is considered more
the international concern is to develop skilled workforce since only the
skilled workforce helps achieve sustainable economic growth. Many researches have been carried out with a
singular focus on development of skilled workforce. The urgent call of the
nations is to retain the skilled force in their respective places and
simultaneously train the existing force towards competency.
next session, we shall briefly look into the necessity of developing skilled
workforce and the steps that must be taken to achieve the goal.