STATISTICAL ANALYSIS

Fluctuations in GDP in Developing Countries

Fluctuations in GDP in Developing Countries

Introduction

Fluctuation in GDP in developing countries is a phenomenon that can affect the whole economy of the country. This fluctuation of GDP is based on various factors; this study is based on two factors that can have impact on GDP of developing countries. These factors include gross investment in developing country and change in stocks of developing country. Moreover, the research study is based on secondary data which is collected from Office for National Statistics and HM Treasury.

Hypothesis

H 1: There is a relationship between gross domestic product and gross investment of developing countries.

H 2: There is relationship between gross domestic product and change in stocks of developing countries.

Variables

The study that is fluctuations in gross domestic product in the developing countries is based on the following variables that include:

Independent variables = Gross Investment and change in stocks

Dependent variable = GDP of developing countries

Discussion

Gross domestic product is defined as the monetary value of goods and services produced by an economy in a given period. Gross domestic product is a indicator that helps to measure the growth or decline of production of goods and services companies in each country, only within its territory. This indicator is a reflection of the competitiveness of enterprises (Keynes, 2008). GDP measures only final output and not the so-called intermediate production, to avoid double counting. Referring to final goods and services are not meant to be taken into account those goods produced in the period for use as feedstock for the manufacture of other goods and services (Keynes, 2008).

Therefore, in final goods and services include those produced in the period which, by their very nature, will be integrated into any production process, and those other assets that have not become integrated into the production process year-end but were assigned to them (so-called closing stocks). Moreover, GDP is a quantity called flow, which counts only goods and services produced during the study phase. The meaning or current flow is opposed to that fund or stock. The first relates to a period (day, week, month, year, etc.), which also must be expressed clearly, although in many cases to their dissemination and widespread use, this period may be understood. For example, the income of a person is a current or flow because you have to explain the period in which it was obtained. Therefore flows or flows have a clear temporal dimension. On the opposite side are the funds or stocks without it, although there is a reference to a point in time. The assets of a person would be an example of a variable background (Keynes, 2008).

Gross domestic product is the total value of the current final goods and services. As an aggregate domestic product or sum total of many components, units of measure in which these are expressed are heterogeneous (tons, meters, units, kilowatt hours, etc.). For a total value, it must transform like basis to what is achieved by monetary values to different goods and services domestic ...