Institute of Business Administration

University of Dhaka
EMBA Program

Managerial Economics (E501)

Assignment 1:
GDP: Relevant Comparison on Per Capita Income & Production per Unit of
different countries, from World Bank Data

Submitted To:
Dr. A. K. Enamul Haque

Submitted by:
Rubayet Khair Rushdi (ZR 1703018)
EMBA 29th Batch

Date of Submission:
20-June 2018
GDP measures the monetary value of final goods and services—that is, those that are bought by the
final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the
output generated within the borders of a country (IMF website). That means it analyzes all the data that
gives information regarding production (unpaid work and illegal product) inside a country produced by
the residents. Therefore, analyzing the data would provide good analysis of the economy of a specific
country.

For further study, let us consider economy of Bangladesh. In this study we will gather information
regarding GDP of Bangladesh, compare with South Asian countries, Singapore and some of the
emerging countries with similar economy. We will then do a comparative analysis on Population, area
and GDP. Further analysis will show PCI, PPU and short conclusion on these data.

Bangladesh- At a glance:
Indicators Value
GDP (Nominal) USD 221,415 MM
GDP ((Purchasing Power Parity) Int $ 536,567 M
GDP (nominal) per capita USD 1,359
GDP (PPP) per capita Int $ 3,581
Tax as % of GDP 8.5%
Environmental Performance Index 29.56
Total Area 147,570 Square Km
Total Population 164,552,000
Source: Wikipedia

Ranking shows Bangladesh holding 45th position based on the nominal GDP, 36th position based on
GDP measuring purchasing power parity. Per capita ranking for both measurement is 148 and 137
respectively. The information tells that the country is holding a medium size economy with its large
population (8th in the world population ranking) and the GDP is large when compared to the area. It is
very hard to hold the result when so large population lives in such a small area. To hold the economic
growth, Bangladesh has been utilizing the natural resources; hence the environment is degrading day
by day.

GDP Comparison:
If we compare the annual GDP (2016) with other countries in south Asia, we see that the annual GDP
growth is in head to head with India. Other countries are holding smaller growth. Countries with
similar emerging economies are also shown in the analysis. It can be said that the growth is
prospective for the investors as well as for the population of the country, only when utilized by the
government.
 Figure 1: GDP growth (annual %) ( https://data.worldbank.org)

However, Reviewing the GDP (PPP) can change the idea, since India has the highest PPP among all
the considered country by far away. Still the growth rate holds the fact that the country is growing at a
good pace like other countries with comparable economy.

GDP (PPP) in Million USD

$2,500,000.00

$2,000,000.00

$1,500,000.00

$1,000,000.00

$500,000.00

$0.00

GDP (PPP) in Million USD

Per Capita income analysis
GDP per Capita or Per Capita income is a country’s economic output. If we consider GDP- Per Capita
on a purchasing power parity basis, we can see that, being an overpopulated country affects the data
as much as it is helpful for countries like Sri Lanka and Myanmar. In South Asia, only Nepal is behind
Bangladesh. Other emerging countries like Nigeria and Vietnam is doing great with their population
compared to their domestic production. Singapore is both developed and a small country, so the data
indicates the countries overall growth with its small population.

Per Capita Income (PPP)

$100,000.00 $90,500.00
$90,000.00
$80,000.00
$70,000.00
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00 $12,400.00 $13,000.00
$7,200.00 $6,300.00 $6,900.00
$10,000.00 $4,200.00 $2,700.00 $5,900.00 $5,400.00
$0.00

Source: https://data.worldbank.org

Production Per Unit:

Production Per Unit can be calculated from GDP & Area info. Unit Can be the area of the country
(PPU = GDP/Area).

The below Table Show the PPU calculation Bangladesh and other countries considered in this study.

Country Production Per Unit (GDP in USD/ Area in square Kilometer)

Bangladesh 1,500,406.59

India 688,773.96

Indonesia 489,374.80

Myanmar 93,448.20

Nepal 143,578.32

Nigeria 438,046.13
 Pakistan 350,351.40

Singapore 412,523,961.7

Sri Lanka 1,239,475.69

Vietnam 619775.97

Source: https://data.worldbank.org

The Performance of Bangladesh in this category is better than most of the countries, Singapore and
Sri Lanka. It clearly indicates the overall productivity condition of Bangladesh. But environment is to
be preserved in this context. Singapore is a good example by creating highly efficient business model
and not affecting the environment.