Measuring Economic Growth and Its Relation with Production Possibility Frontier and Returns to Scale

International Journal of Economics and Research, Vol. 7, No. 6, p. 75-86, 2016

International Journal of Economics and Research, Vol. 8, No. 2, p. 16, 2017

13 Pages Posted: 2 Jun 2017

See all articles by Merter Mert

Merter Mert

Department of Economics, AHBV University

Date Written: December 28, 2016

Abstract

Economic growth is frequently explained by an increase in the quantity of production. However, economic growth is an increase in the productive capacity of an economy and it is explained by an outward shift of production possibility frontier. The aim of this study is to measure economic growth as an increase in the productive capacity by using production possibility frontier. Our result shows that there is a condition in order to guarantee positive economic growth.

Keywords: Economic Growth, Production Possibility Frontier, Returns to Scale

JEL Classification: O40, O49

Suggested Citation

Mert, Merter, Measuring Economic Growth and Its Relation with Production Possibility Frontier and Returns to Scale (December 28, 2016). International Journal of Economics and Research, Vol. 7, No. 6, p. 75-86, 2016. Available at SSRN: https://ssrn.com/abstract=2978238

Merter Mert (Contact Author)

Department of Economics, AHBV University ( email )

Ankara, 06500
Turkey

HOME PAGE: http://www.mertermert.org

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