Measuring Economic Growth Through National Income Elasticity

DOI

10.2991/aebmr.k.200127.038How to use a DOI?

Keywords

Elasticity, Export (X), Foreign Investment (FDI), National Income (GNP) and Economic Growth

Abstract

In the Industrial Revolution Era 4.0 all countries must face increasingly fierce competition from the flow of goods/services, labor, and capital. Exports and investments are the keys to national economic growth. All of this will affect the amount of national income, which will determines the size of economic growth. The amount of national income can be influenced by several factors, including exports and investments made. Through the concept of elasticity, people can clearly see the magnitude of the influence of the variable Foreign Investment (FDI) and Export (X) on National Income, in this case, GDP. The results of the calculation with the concept of elasticity show that when the Export and FDI variables increase, the GDP variable rises but not as much as the increase in Exports and FDI. The GDP response is a small or low response (inelastic). However, when the export and FDI variables go down, the GDP variable actually rises higher than changes in exports and FDI.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - M.S. Sundari
AU  - M. Ariani
PY  - 2020
DA  - 2020/01/31
TI  - Measuring Economic Growth Through National Income Elasticity
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 187
EP  - 190
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.038
DO  - 10.2991/aebmr.k.200127.038
ID  - Sundari2020
ER  -