Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 November 2014 Vol. 3(11), pp 519-521

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Original Research Articles

Relationship between annual electricity production (kwh) and physical GDP (US dollar) per capita: An empirical index for measuring the level of economic development of a nation 

Xue-Ming Yang

Manitoba Mineral Resources, Manitoba Geological Survey, 360-1395 Ellice Avenue, Winnipeg, MB R3G 3P2, Canada

Email: eric.yang@gov.mb.ca Accepted 10 November 2014

Abstract

This paper presents an empirical index for estimation of economic development level and living standard of a country based on the relationship between annual electricity production (kwh) and physical GDP per capita (gross domestic product contributed by agriculture and industry) (in US dollar). The values of annual electricity production per capita (AEPPC) is positively correlated with physical GDP per capita for selected eight nations, suggesting that the higher AEPPC would indicate higher degree of economic development and living standard of a country despite the presence of notable exception. The AEPPC can be used as an empirical index to assess economic development and living standard of a nation. 

Keywords: Annual electricity production per capita (AEPPC); physical GDP per capita; living standard; economic development level