Improving The Standard Of Gross Domestic Product

1201 Words Nov 2nd, 2014 5 Pages
To keep the economy running smoothly, to maintain price stability and to alleviate poverty are the main goals for formulating policies around the world. The experiences of every country are various as different patterns of economic development. Although it is widely accepted that the reduction of poverty accompanies the economic growth of a country, which encourages many countries, especially some developing countries, to concentrate on improving the standard of gross domestic product (GDP), it is still controversial whether the causal relationship exists or not, for recent evidence shows that if the measures are not taken appropriately by the government, citizens may remain impoverished. This essay focuses on China and India, two of the largest developing countries, to discuss this disputable topic in detail.
On one aspect, the statistics indicate that developing countries that have been experiencing fast economic growth in recent years have also undergone a decrease in poverty. It is generally accepted that with the prosperity of national economy, people 's income increases, the living standards improved. Indrani and Mitra (2004) analysed data from 15 major States in India for the years 1973-4, 1977-8, 1983, 1987-8, 1993-4 and 1999-2000, which was extensive data covered 1970s, 1980s and 1990s. The result of the research suggests that there is particular association among growth, poverty and health, which means higher economic growth coincides with lower poverty and a…

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