Trade War: GDP vs GNP Developing vs Developed

countries
Kim, Gew-rae
Abstract:
GDP and GNP both try to measure the market value of all goods and services produced for final sale in
an economy. The difference is how each term interprets what constitutes the economy. GDP refers to and
measures the domestic levels of production in a country. It represents the monetary value of all goods
and services produced within a nation's geographic borders over a specified period of time. GNP
measures the levels of production of all the citizens or corporations from a particular country working or
producing in any country. Therefore, it includes the compensation and investment income received by
nationals working or investing abroad. More closed economy impact negatively more on GDP. We see
how New Trade War impact to GDP and GNP on developed and developing countries differently.

Kim, G. R. (2018). Trade War: GDP vs GNP Developing vs Developed countries.

Health, Quality of Life and GDP: An ASEAN Experience

Abstract
Governments all over the world would like to improve the well being of its citizen. One aspects
of well being can be seen through the quality of life (QoL) a person enjoys. Measuring and
determining what is QoL is not an easy task. In this paper, using per-capita income as the
yardstick for QOL, and the role of government through the way it spend its public money would
be able to tell how ASEAN governments’ expenditure influences the QoL. Particularly
government expenditure on health signifies the commitment of a government in improving the
QoL. QoL can also be seen through the availability of health care in country. When health care
improves, life span and earning abilities will raise too. It is the government’s responsibility in
providing the best health care to the people. Government’s commitment can be gauged through
the amount it spends on these items. At the same time government spending would bring
spillover effects in terms of raising per-capita income, which reflects the QoL. Using data on
government expenditure of ASEAN countries for the last 15 years, it would be possible to
determine on what extent expenditures on health do influence the per-capita income. Initial
findings reveal that the impact of both these government expenditures on per-capita income is
not the same for all the ASEAN countries.
Rao, R. R., Jani, R., & Sanjivee, P. (2008). Health, quality of life and GDP: An ASEAN experience. Asian
Social Science, 4(4), 70-76.

Balance of Payments Constrained Growth

Models: History and Overview
Abstract
Thiriwall’s 1979 balance of payments constrained growth model predicts that
a country’s long-run growth of GDP can be approximated by the ratio of the
growth of real exports to the income elasticity of demand for imports assuming
negligible effects from real exchange rate movements.1 This chapter surveys
developments of the model since then allowing for capital flows, interest
payments on debt, terms of trade movements and disaggregation of the
model by commodities and trading partners. Various tests of the model are
discussed, and extensive lists of papers that have examined the model are
presented.

Thirlwall, A. P. (2012). Balance of payments constrained growth models: history and overview. Models of
balance of payments constrained growth, 11-49.

Does Trade Cause Growth?

ByJeffrey A. Frankel, David Romer*

ABSTRACT
Examining the correlation between trade and income cannot identify the direction of causation
between the two. Countries’ geographic characteristics, however, have important effects on
trade, and are plausibly uncorrelated with other determinants of income. This paper therefore
constructs measures of the geographic component of countries’ trade, and uses those
measures to obtain instrumental variables estimates of the effect of trade on income. The
results provide no evidence that ordinary least-squares estimates overstate the effects of trade.
Further, they suggest that trade has a quantitatively large and robust, though only moderately
statistically significant, positive effect on income.
Frankel, J. A., & Romer, D. (2017). Does trade cause growth?. In Global Trade (pp. 255-276). Routledge.