Deriving Constant UGDP Using Econometric Models and Calculating Real GDP Using Valuation of Key Natural Resources

Abstract

Wealth Creation is the primary motive for Business, but Unequal Wealth Distribution causes unbalanced economic growth. Economic disequilibrium is a global phenomenon arising out of cyclic nature of Business at macroeconomic level. Shifting dynamics and dormant statics need to be stabilized to a state of macro-constancy to ensure uniform growth. Macro-Constancy of economy, based on the Law of Conservation of Energy, realigns business processes to Energy dimensions. The authors propose the concept of Universal Gross Domestic Product (UGDP) as a measure to counter business cycles for a stable world economy. The robustness of an economy through interdependence of its various productive sectors is demonstrated by an example using Input-Output analysis and Leontifs’s Principle. Natural Resources are the raison d'etre for business; the real wealth of nations. Yet, nations underplay their significance in reporting economic growth. The authors propose to engineer optimization strategies aimed at intelligent utilization of natural resources using regression analysis techniques. India should lead the economic development of nations by adopting an active role as universal ombudsman under the Triple Helix concept, in controlling, monitoring and regulating the fast depleting stock of the natural resources of the world.