How to Calculate GDP and HDI
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How to Calculate GDP and HDI
by adjiebrotot Wed 16 May 2012 - 21:28
Hello there! i think some of you confused with the terms of GDP (Gross Domestic Product/Produk Domestik Bruto) and HDI (Human Development Index/Indeks Perkembangan Manusia) that used for making AOWN Proposals. so today, i will tell it to you how to calculate that thing(s).
1. The GDP and Per Capita
The GDP commonly called National Income. The GDP must balanced with all factors, small country like Singapore is impossible if has GDP over $ 1 Trillion. some factor that affect the GDP are Area, Population, Country Status (Developed/Developing/Not Developing), Imports, Export, etc.
this is the example:
Indonesia is a Country has a land area of 1,919,440 km square, the population is 237,424,363. but, the Country is a Developing Country with Main Import sector of Automotive and Gadgets and Main Export sector of Agriculture, Natural Gas, Coal, and Uranium.
then, you can imagine the country that has population over 200 million, in logical, the GDP must be over 1 trillion because that is a developing country with the valuable Main Exports.
the trick is simple, just imagine. the Country with a small area also has a small population. a small population also affect to the small GDP. a country with population of 20,000,000 can't beat the GDP of a country with population of 200,000,000 even it was a richest country in the world.
So what is Per Capita, if Indonesian GDP much higher than Netherlands, why Netherlands is richer than Indonesia?
okay, the rich country usually calculated by Per Capita. Per Capita formula is GDP divided by Population. so we can say, Per Capita is income of each person in a country. if Your Country has $ 5000 per capita, we can say the average income for each person in your country is $5000 per year (or 50.000.000 Rupiah per year)
SO THE FORMULA IS:
GDP: just imagine. but don't forget the factor that affect the GDP.
Per Capita: GDP divided by Population
2. The HDI
Human Development Index is a term to measure the Quality of Life in your Country. later, your country will grouped into Developed, Developing, and Not Developing. like GDP, calculating HDI is simple. just imagine it.
Factors of HDI are:
- Life Expectancy & Health Quality
- Knowledge & Education
- Living Standard
now the HDI Standard in the world are:
Very High: >0.793
High: >0.698
Medium: >0.552
Low: <0.511
but no HDI over 0.950 and below 0.290. HDI of 0.998 is very unrealistic. (hehehe :p)
1. The GDP and Per Capita
The GDP commonly called National Income. The GDP must balanced with all factors, small country like Singapore is impossible if has GDP over $ 1 Trillion. some factor that affect the GDP are Area, Population, Country Status (Developed/Developing/Not Developing), Imports, Export, etc.
this is the example:
Indonesia is a Country has a land area of 1,919,440 km square, the population is 237,424,363. but, the Country is a Developing Country with Main Import sector of Automotive and Gadgets and Main Export sector of Agriculture, Natural Gas, Coal, and Uranium.
then, you can imagine the country that has population over 200 million, in logical, the GDP must be over 1 trillion because that is a developing country with the valuable Main Exports.
the trick is simple, just imagine. the Country with a small area also has a small population. a small population also affect to the small GDP. a country with population of 20,000,000 can't beat the GDP of a country with population of 200,000,000 even it was a richest country in the world.
So what is Per Capita, if Indonesian GDP much higher than Netherlands, why Netherlands is richer than Indonesia?
okay, the rich country usually calculated by Per Capita. Per Capita formula is GDP divided by Population. so we can say, Per Capita is income of each person in a country. if Your Country has $ 5000 per capita, we can say the average income for each person in your country is $5000 per year (or 50.000.000 Rupiah per year)
SO THE FORMULA IS:
GDP: just imagine. but don't forget the factor that affect the GDP.
Per Capita: GDP divided by Population
2. The HDI
Human Development Index is a term to measure the Quality of Life in your Country. later, your country will grouped into Developed, Developing, and Not Developing. like GDP, calculating HDI is simple. just imagine it.
Factors of HDI are:
- Life Expectancy & Health Quality
- Knowledge & Education
- Living Standard
now the HDI Standard in the world are:
Very High: >0.793
High: >0.698
Medium: >0.552
Low: <0.511
but no HDI over 0.950 and below 0.290. HDI of 0.998 is very unrealistic. (hehehe :p)
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