Part 3: Relation between a Country’s GDP and Per Capita GDP
Part III: Relation between a Country’s GDP and Per Capita GDP
In this essay, we shall show the relation existent between a country’s GDP and its per capita GDP. The countries whose GDP we shall analyze are: Canada; China; France; Germany; Japan; the Russian Federation; the United Kingdom, and the United States. To do so, we shall divide the countries GDP between the total population (TP). To shorten the explanation, we shall use the following formula GDP/TP. All the data used in this essay corresponds to the 2013’s information on the World Bank website.
Per Capita GDP Analysis
Country GDP Population Per Capita GDP
United States 16,768,100,000,000 316,128,839 $53,041.981
Canada 1,826,768,562,832 35,124,279 $51,964.330
Germany 3,730,260,571,356 80,651,873 $46,251.381
France 2,806,427,978,234 65,939,866 $ 42,560.413
United Kingdom 2,678,454,886,796.7 64,106,779 $41,687.149
Japan 4,919,563,108,372.5 127,338,621 $38,633.708
Russian Federation 2,096,777,030,571.3 143,499,861 $14,611.700
China 9,240,270,452,047 1,357,380,000 $6,807.330
Source: World Data Bank. (2013).
This is a list of the countries’ per capita GDP. However, the order has not remained the same. A country like China, with a GDP of $9,240,270,452,047.0 should be among the highest in the world, nevertheless, given the amount of population it has, is ranked last among the selected countries. What we can observe is that there is a correlation between the number of population, and way GDP is used. What we mean is that despite a country has a high GDP, if it also has a large amount of population, there is going to be inequality in the distribution of that said GDP. Hence, people are going to perceive less of the GDP in educational, or social investments. On the other hand, a country like Canada, that has a small amount of population, compared to the extension of the state is able to provide their citizens with a healthy amount of benefits and high salaries.
That way, countries with high GDP but smaller are perceived as richer by the World Bank, as they can cover their citizens needs. In the same way, their economies are buoyant and can offer salaries higher than other countries.
World Data Bank. (2013). Retrieved June 9, 2015, from http://databank.worldbank.org/data/