Economy: Data Definitions and Sources
Income per capita
Income per capita is the annual gross domestic product (GDP) divided by population. GDP is an aggregate measure of production equal to the sum of the gross values added of all resident institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs). It is also equal to the sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers’ prices, less the value of imports of goods and services, or the sum of primary incomes distributed by resident producer units.
Income per capita is expressed in US$, constant prices, constant purchasing power parities (PPPs). PPPs are the rates of currency conversion that equalize the purchasing power of different currencies by eliminating the differences in price levels between countries.
Economic growth measures the percentage change in real GDP (US$, constant prices, constant PPPs).
Labour productivity growth
Labour productivity growth measures the annual percentage change in labour productivity. Labour productivity is defined as the value of the goods and services produced (US$, constant prices, constant PPPs) per hour worked. For this indicator, we take the average labour productivity growth for the most recent five years because individual year data can be volatile in smaller jurisdictions.
Inflation is measured by the change in the consumer price index (CPI). The CPI is a measure of the cost of a “typical market basket” of goods and services that households consume. The typical market basket includes items such as food, clothing, transportation, homes, and recreation.
The unemployment rate is the number of unemployed people as a percentage of the labour force.
Employment growth is the annual percentage change in employment.
Inward greenfield FDI performance index
The inward greenfield FDI performance index ranks countries and provinces by their greenfield foreign direct investment (FDI) inflows relative to their economic size. It is the ratio of a country’s or a province’s share of global greenfield FDI inflows to its share of global GDP. Greenfield FDI is investment that expands an existing facility or creates a new facility.
The mathematical formula is:
|gINDi =||gFDIi ÷ gFDIw|
|GDPi ÷ GDPw|
gINDi = inward greenfield FDI Performance Index of the ith country or province
gFDIi = greenfield FDI inflows in the ith country or province
gFDIw = world greenfield FDI inflows
GDPi= GDP in the ith country or province
GDPw = world GDP
Therefore, if a country’s or province’s share of global greenfield FDI inflows matches its relative share of global GDP, its inward greenfield FDI performance index will be one. A score greater than one indicates a larger share of greenfield FDI relative to GDP, and a score less than one indicates a smaller share of greenfield FDI relative to GDP.