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The Chinese meaning of GPI
because GDP sometimes can't truly reflect a country's economic development, western economists have put forward a new measurement index, GPI(Genuine Progress Indicator), to evaluate a country's economic development. Take the United States as an example. The per capita GDP of the United States is now about 4, US dollars, but its per capita GPI is less than 2,, and the growth has not been great for decades. It reflects the price change indicators calculated by the prices of products and services related to residents' lives. Generally speaking, when this CPI is greater than 3%, it will be inflationary; When it is greater than 5%, then inflation is serious.

traditional GDP statistics only emphasize the total production and market value, while ignoring the negative problems in resources, manpower and environmental protection brought about by economic development. If we blindly pursue the annual GDP growth percentage, but at the same time pay no attention to whether the GDP growth will bring excessive consumption of natural resources, unreasonable use of human resources and damage to the ecological environment, the result will inevitably have a negative impact on the social economy.

For example, the United States is a big automobile country, and the acid rain produced in the production of automobile tires will endanger forests and pollute water sources. Statistically, this negative disadvantage has not reduced the total GDP of the tire industry in the United States. On the contrary, the capital and output invested in controlling this environmental pollution have increased the total GDP of the United States.

GDP and GPI should cause us to think, for example:

(1) In recent years, industrial areas all over Taiwan Province have been quietly transforming, and traditional industries or industries with heavy pollution have gradually disappeared and moved out, replaced by electronic and computer components manufacturing. For example, a Taiwan Province company recently planned to invest in the "p-xylene (PX)" project in Haicang Development Zone of Xiamen. If it is put into production successfully, Xiamen will gain a huge appreciation of tens of billions of GDP, which is rare in history. However, this toxic and explosive chemical product is produced only a dozen kilometers away from Xiamen Island, so it is necessary to be cautious from the perspective of GPI.

(2) Over the years, countries such as Japan and South Korea have increased their investment and set up factories in China, but many products are produced in China and sold to the United States. Although these foreign investments have really played a role in China's GDP growth, they have continuously increased China's trade surplus with the United States, which has triggered Sino-US trade disputes and the pressure of the United States on RMB appreciation. As we all know, the continuous appreciation of RMB is not conducive to the export of our domestic products. At the same time, Japan and South Korea's trade surplus with the United States has been greatly reduced year after year, and the problem of trade surplus with the United States has been solved.

calculation of GPI in China

calculation method of GPI in China

in this paper, the latest technical framework of GPI in the world is used for reference, and the method is improved and perfected. Combined with the statistical data of China, the GPI in China is calculated. The contents include:

(1) Uneven distribution index. By calculating the proportion of personal consumption expenditure of urban residents and rural residents in the total expenditure.

(2) Weighted personal consumption expenditure. The expenditure is obtained by the following formula:

where C(t) is the weighted personal consumption expenditure; Cc is the total personal consumption expenditure of urban residents; Wc is the weight of urban residents' personal consumption expenditure; Cv is the total personal consumption expenditure of rural residents; Wv is the weight of rural residents' personal consumption expenditure.

(3) Services generated by existing durable consumer goods. For the convenience of calculation, this paper only converts 3% of the total value of durable consumer goods in the current year and the previous year.

(4) Value of services provided by volunteers and unpaid housework. Due to the lack of data, this paper only calculates the service value generated by housework, but ignores the value of volunteer service.

(5) Services generated by public artificial capital. This paper mainly calculates the service value of libraries, museums and roads.

(6) noise pollution cost, air pollution cost, water pollution cost and ozone loss cost. In this paper, the cost of noise pollution is calculated by using the noise pollution hazard assessment of the World Health Organization. For the remaining costs, due to the lack of data, this paper replaces them with the sum of direct economic losses and economic compensation, fines, industrial pollution control costs, wastewater treatment costs and investment in pollution control projects.

(7) the cost of underemployment. The cost is obtained by the following formula:

in the formula, U(t) is the cost of underemployment; Nu is the number of registered unemployed persons in that year; Ia is the per capita income of the year.

(8) defense and repair expenditure. This paper mainly calculates from the following three aspects: ① The cost of traffic accidents only refers to the direct economic losses caused by traffic accidents; ② The cost of family breakdown is calculated from two aspects: the cost of divorce by agreement and the cost of divorce by litigation; ③ Defensive personal health expenditure only refers to residents' medical expenditure.

(9) Sacrificing the cost of natural capital. Because the total area of wetlands and forests in China has remained basically unchanged from 1994 to 24, this paper mainly calculates from the following two aspects: ① the cost of farmland loss, which only refers to the cost of farmland reduction; ② The cost of energy loss.

To sum up, we can get the calculation formula of GPI:

Description of uncalculated items

Due to the unavailability of data, the cost of lost leisure, exchange cost and crime cost are ignored. Obviously, the absence of the above-mentioned uncounted items will have an impact on the calculation results of GPI, but the impact of these items is not major and has little impact on the results, so their absence will not affect our analysis of the problem.