In this paper, I estimate the Genuine Progress Indicator (GPI) of Singapore from 1968 to 2014. I start by introducing the GPI as an indicator of people's standard of living, and then describe the different items used to estimate the GPI. My analysis of the data reveals that during the 47 years under investigation, the relationship between the GDP and the GPI gradually weakened, as the social and environmental costs that accompany economic growth grew faster than the economic benefits. By 1999, the relationship between the GDP and the GPI virtually disappeared, and in 2005 the GPI of Singapore started to drop, while the GDP kept growing. By 2014, the GPI of Singapore had dropped to the 1999 level. This means that the economic growth that occurred from 1999 to 2014 did not result in higher standards of living. After 1999, Singaporeans would have been better off if the government had pursued policies that directly improve people's lives, instead of promoting economic growth and expect it to trickle down into higher living standards.
Scopus Subject Areas
- Economics, Econometrics and Finance(all)
- Genuine progress indicator
- Gross domestic product
- Threshold hypothesis