Why is per capita income important for development

Rhodes, E. The Journal of the Royal Statistical Society , pp. Tintner, G. New York , pp. Download references. You can also search for this author in PubMed Google Scholar. I wish to acknowledge the helpful comments on an earlier draft of this paper of my colleague, Dr. Asatoshi Maeshiro.

Reprints and Permissions. Thorn, R. Per capita income as a measure of economic development. GDP is the gross domestic product of a nation while the population would be the entire population of a nation. This calculation reflects a nation's standard of living. GDP per capita measures the economic output of a nation per person. It seeks to determine the prosperity of a nation by economic growth per person in that nation.

Per capita income measures the amount of money earned per person in a nation. This metric seeks to evaluate the average per-person income for a given region in order to determine the standard of living and quality of life of a population. Bureau of Economic Analysis. World Bank. International Monetary Fund. Statistics Times. International Markets. Emerging Markets.

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We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. It is an important criterion because it tells us what an average person is likely to earn and also gives some idea about the rising standard of living. Prosperity of a country depends not only on its national income but also on the number of people who would share it. In case the number of people is large, the average income will be less.

This is the case in India. Average income, i. Along with average income, equitable distribution of income in a country should also be considered. All sections of the economy have become better cannot be concluded because different sections of She economy may have become better or worse. She has been published in both print and Web publications and has written on everything from fly fishing to parenting. She currently works through her business website, Takingdictation.

Share It. TL;DR Too Long; Didn't Read Uses of per capita income include assessing stability and wealth, determining the need for aid, making decisions about investments and market research. Office of the Comptroller of the Currency.

Accessed April 21, National Institute of Mental Health. Our World in Data.