An Analysis of Measures of Economic Development: A Case Study of Pakistan Economy

Abstract

Aim of the Study: The paper analysis different Classical measures of economic development, their similarities and differences.

Methodology: There are different measures or techniques to measure the economic development of a country. In the paper, researchers have used three of the Classical measures estimators for Pakistan economy point of view. These measures are Per Capital Income in U.S. dollar (PCI US. $), Per Capita Income in Rs. Market Prices (PCI Rs. MP). The per capital income in Dollar is posed as a perfect measure of development also considered as adjusted income measure and satisfied the Purchasing Power Parity (PPP) condition.

Findings: The analysis provides us an interesting result that per capita income on market prices shows, more similarities with an international measure of economic development. It also provides another important result that both Classical measures of economic development are perfect.

Conclusion: The study provide an important conclusion that per capita income on market prices shows more similarity with an international measure of development i.e., per capita income on US $. So, both measure of economic development are perfect. Moreover, to measure level of economic development the both measure are correct, according to Pakistan economy analysis.