Harley Hahn - Economics Explained - Understanding Gross Domestic Product (GDP)

Money and
Economics

Understanding Gross Domestic Product

What Makes for a Very High GDP?

To finish our discussion of gross domestic product, I'd like you to consider the following question. Let us say that, hypothetically, you were called upon to design your very own country. What characteristics would you choose for that country to maximize the chances of it having a very high GDP per capita?

Below is the list of characteristics that are associated with economic regions that have a very high GDP per capita.

Figure 8: Characteristics of countries with a very high GDP per capita

What Makes for a Very High GDP Per Capita?

Small to medium-sized land mass
Small to medium-sized population
Democracy
Free press
Stable government
Post-industrial economy (more dependence on services than on manufacturing and agriculture)
Business-friendly government
Long-range government planning
Significant investment in infrastructure
Highly literate and educated population
High-speed network connectivity
Stable work force
Diversified economy

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