Value Added and GDP: The Smart Versus the Donkey
If manufacturing matters—and if industrial policy can help develop manufacturing—that is because it creates high value added. Value added is a very popular concept in daily political and economic discussion. One hears it in the television debates and reads it in the newspaper articles; everybody wants higher value added, but few apparently are aware of what value added means technically and how it relates to the GDP. It is also a key concept inherent in the discussion in this entire book. So, this chapter digresses into the meaning of the concept and its relationship to the GDP and industrial policy.
- Ahn, S. (2013). Evolution of industrial policy and green growth in Korea, presentation in future of the world trading system: Asian Perspectives Seminar.Google Scholar
- Kim, K. S. (1981). The Korean Miracle (1962–1980) Revisited: Myths and realities in strategy and development, The Helen Kellogg Institute for International Studies Working Paper #166, November 1991.Google Scholar
- Krugman, P. R. (1997). The age of diminished expectations: US economic policy in the 1990s. MIT press.Google Scholar
- OECD. (2006). OECD Compendium of Productivity Indicators 2013. Paris: OECD Publishing.Google Scholar
- Yülek, M. (1997). İçsel büyüme teorileri, gelişmekte olan ülkeler ve kamu politikaları üzerine. Hazine Dergisi, 6 (April 1997), 6–13.Google Scholar