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Causal relationship between gross domestic product
and personal consumption expenditure of Nigeria (2009)6 Comments-
This is a short but quite technical paper, using the statistical technique of linear regression. I am adding it here for two reasons: 1) Linear regression is arguably the most widely used technique in economics; 2) As the paper makes clear, GDP is the most common measure of economic activity in a country.
That being said, GDP has serious problems, as does linear regression. However, they must be understood.
If anyone is interested in this paper but has questions, please let me know and I will help as best I can.
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The paper concludes that personal expenditure increase is what determines increase in GDP and not the other way round. This is a good start to re-calibrate what has been an upsidedown approach that legitimizes “trickle-down economics”. The GDP approach serves certain political agendas and I think those who benefit from it will try to maintain it so it is up to those on the receiving end to take this approach as put in the paper-
Just to add, GDP tells us very little about how money is being used in a country. We need metrics that show clearly investment in education, healthcare, agriculture, kwk. As you say, we will have to construct our own metrics.
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Yes. The metrics ought to be very thorough
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Reject all colonist systems. It’s no longer working for them, it will never work for Africa. -
We really do
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