definition

Three approaches to GDP and why two fail in Africa

The system of national accounts requires deriving GDP three independent ways: the expenditure approach (the Keynesian C+I+G+net exports, but consumption is unknown without reliable household surveys so it is always derived as a residual), the income approach (wages+profits+rents, uncomputable because most operators have no formal wage and barter), and the production approach (summing industrial sectors from agriculture down to government and NGOs); in sub-Saharan African statistical offices only the production approach is actually used.

definitionpending

Speaker

Morten Jerven

Evidence Quote

What you do have is the production approach. Which means basically you go through the familiar industrial tables, where you have agriculture at the top; then you have mining; then you have manufacturing

Source

Morten Jerven on Measuring African Poverty and ProgressEconTalk
Created: 6/13/2026, 12:25:58 AM

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