Submitting Campus

Daytona Beach

Department

Management, Marketing, & Operations

Document Type

Article

Publication/Presentation Date

2016

Abstract/Description

This research proposed a new indicator of countries’ development called “macroconstants of development”. The literature review indicates that the concept of "macroconstants of development" is not used at the moment in neither the theory nor the practice of industrial policy. Research of longitudinal data of total GDP, GDP per capita and their derivatives for most countries of the world was conducted. An analysis of statistical information has been done by employing econometric analyses.

Based on the analysis of the statistical data, which characterizes the development of large, technologically advanced countries in ordinary conditions, it was identified that the average acceleration of an individual country’s development is practically independent of time. Therefore, the new indicator “macroconstants of development", which characterizes the acceleration rate of a country’s technological development, was proposed. Several advantages were recognized for the proposed indicator of acceleration, rate of growth of GDP and GDP per capita, over other commonly-used development indicators.

The findings of this research indicated that the majority of large, technologically advanced countries can be grouped together using the proposed indicator, the acceleration rate of development or “macroconstants of development”. The practical application for employing the “macroconstants of development” as a single indicator is to more accurately forecast 15 or more years of long-term development of individual countries as well as large firms.

Overall, the contribution of this research is a proposed new direction to study the development of the world’s economic systems at the micro, meso and macro levels. As a result, the new advanced method will be available to policy makers for economic development decisions under the market conditions.

Publication Title

International Journal of Business and Globalisation

Publisher

Inderscience