GDP Sectors

8/3/2019 GDP Sectors

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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

2Wednesday 11 January 12


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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%



GDP - Rs. 1194000 cr



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17%

26%

57%



GDP - Rs. 4807000 cr



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0

20

40

60

80

United States EU Japan Nigeria China


Percentage of GDP in various sectors of the economy 21Wednesday 11 January 12


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GAPMINDER

http://www.gapminder.org/http://www.gapminder.org/http://www.gapminder.org/http://www.gapminder.org/


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CLOSING R EMARKS23Wednesday 11 January 12
http://www.time.com/time/magazine/article/0,9171,1205390,00.html


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FUR THER R EADINGAll Images are links to relevant articles

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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Documents

GDP Sectors