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.
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Speaker
Morten JervenEvidence 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”
Created: 6/13/2026, 12:25:58 AM
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