Comparing Of GDP And GPI:the Discussing Of GPI’S Application

Nowadays, GDP has been a statistical index which used in various countries in the world. But with insight of the GDP’s deficiency, building a more effective index to evaluate the sustainable economic development is becoming more and more important. As a new index which can remedy the deficiency of GDP, the discussing of GPI’s localization is significant. In recent years, there are several practical cases overseas, but the GPI’s localization in China is just beginning,and we need more practical cases in China. This passage compared the GDP and GPI from different point of view, and built the GPI evaluating model for localization. After calculateing the Chongqing GPI, this passage preliminary analyzes the result. The main work included:1. Summarized the basic theories of GDP and GPI from their backgrounds, histories, and development tendencies.2. Compared and analyzed the different of GDP and GPI from the point of formation and accounting method, function and influences, shortage and the applications.The achievement and innovation of this part are as follows:We disscussed the relationship between GDP and GPI, we found that they are before and after successive,and they focused on different views.we found that GPI repairs GDP’s deficiencies from three points of view:society, economy and environment.GPI found the cost and benefit of production which ignored by GDP. But GPI also has its own deficiencies, like its index is subjective and hard to estimate. And then,in the applications of GDP, the accounting system is comparatively complete, GPI is used to repair the deficiencies of GDP, as a measuring tool to help sustainable development.3. On the base of the main frame of GPI evaluating and combining the physical truth of Chongqing, this passage built the evaluating frame of Chongqing. By summarizing the references, adjust the computing method of sub-account based on the real data. At last, this passage calculated the GPI of Chongqing from2006to2010. The result of calculating shows that the GPI of Chongqing from2006to2010is basically rising year by year, but the gap between GDP is also expanding. And then, the result of calculating shows that, the year of2008is the best year of development from2006to2010, but in the year of2009, the GPI of Chongqing goes down and from the year of2009, the gap between GPI and GDP is expanding. Analyzing from the rate of contribution of sub-account, we find that the personal consumption is playing an very important role in GPI of2008and2009. Beyond that, the value of household work and parenting, services of household capital,cost of crime, increase of leisure time, cost of underemployment, cost of consumer durables, cost of commuting, and the long-term environmental damage,are also influential.The analysis of GPI accounting results can prove that, GPI can show Chongqing’s state of economic development trustily. Personal consumption, the value of household work and parenting, services of household capital, increase of leisure time are main positive elements, and cost of commuting, cost of underemployment, cost of consumer durables are main negative effects. For Chongqing, the high cost of commuting is closely related to the geographical conditions, and the cost of underemployment, the cost of consumer durables reflect the problems in Chongqing’s social development and citizen welfare.Afer calculating Chongqing’s GPI, we can prove that GPI, as a auxiliary index for GDP, is an effective measure to analyze GDP’s social cost and environmental cost.GPI can reflect the society’s state of sustainable development trustily.4. According to the GPI practical case in Chongqing, this passage summerized the difficulties in GPI’s localization, and forecasted the future of GPI’s localization.The results and innovations of this part are as follows:The existing researches of GPI are mainly discussing the repairing to GDP’s deficiencies, this study found that GPI also has its own defiencies.GPI has hard operability.GPI also can not repair GDP’s all deficiencies, like can’t reflect the way of economy development, the quality of economy development and the accumulate of treasure. So, we should build data statistics system to help GPI’s calculation.At the same time, continuing study estimation methodes for externalities of economic activities, completing and innovating the calculating accounts on the basis of different areas’actual situations. At last,we suggest that proceed GPI’s calculation in characteristic cities,use GPI results as goverment’s performance evaluation, to change the situation which government go after GDP blindly.