Social Indicators Research

, Volume 57, Issue 2, pp 201–229 | Cite as

The Relationship between Economic Development and Social Welfare: A New Adjusted GDP Measure of Welfare

  • Sardar M. N. Islam
  • Matthew Clarke
Article

Abstract

Existing literature focuses on the issue of preparation of social welfare measurements on the basis of an unadjusted Gross Domestic Product (GDP). This paper extends this method to incorporate cost-benefit analysis of economic growth in a growing economy in calculating the adjusted GDP, termed as the cost-benefit (CB)-adjusted GDP. This approach is empirically applied to Thailand. There are stark differences between GDP per capita and CB adjusted GDP per capita rates for this period. This paper concludes that GDP can be used as an indicator of social welfare if the GDP estimates are undertaken within a cost-benefit analysis framework.

Development GDP Thailand Welfare 

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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Sardar M. N. Islam
    • 1
  • Matthew Clarke
    • 1
  1. 1.Centre for Strategic Economic StudiesVictoria UniversityMelbourne CityAustralia

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