Monday, November 14, 2016

Per Capita Income Effect In A State


National income accounting refers to a set of rules and techniques to measure the flow of the entire output of goods and services produced and the whole stream inputs (factors of production) used by an economy to produce output of goods and services itself. It can be concluded that the calculation of earnings is a framework of national calculations used to measure the activity The economic and takes place in an economy. calculation of earnings and national product was developed around 1930, precisely in 1932 when US Department of Commerce to try to collect the data, and published 1934 in the form of the calculation results. The calculation of the national income and product that was developed around 1930 This is intended as a tool in the quantification of various real economic events that occur in the community. In a further development, calculation of the national income has even become a very important part in the macroeconomic, special in an attempt to carry out an analysis of economy. Data from the national income accounts is very important for many parties, both for economists, governments, as well as for the business or the business sector. Measurement or calculation of output nasional indispensable in theory or macroeconomic policy. This measurement is preparing us to face various The central issues related to economic growth, the business cycle, the relationship between economic activity and unemployment, as well as the size and the determinants of the rate of inflation. Before the concept of GNP is found, the condition of the economy is difficult to ascertain.

The flow velocity of output or expenditure or commonly referred to as the flow velocity economic activity is a diagram illustrating the relationship between the various economic actors such as the household sector which is one of the decision-making units presents in the sense of selling or leasing the factors of production to company, the corporate sector is an organization consisting of manufacturers who produce or offers of goods and services through product market, namely the government sector organizations which has two main functions, namely to provide goods and services to households and companies and the redistribution of income and wealth, the latter sector is
abroad are represented by export and import activities.

In addition there are many markets that exist in the economy as a factor of production in markets where factors of production are traded, the market for goods or products that market where goods and services are traded, and financial or credit markets, namely the market where the supply of credit or funds by households and the demand for credit or funds by Companies occurred or took place. transfer (transfer payments). National income can be obtained domestic product minus net indirect taxes and non-tax liabilities, payments transfer by the company, plus the government subsidy and reduced again with surplus derived by an enterprise (SOE).

Use of the Gross Domestic Product
Gross domestic product (GDP) can be defined as the value of goods and services produced within the country in a given year. Something in the economy in developed countries and in developing countries, the goods and services produced not only by companies belonging to the country's population but by residents of other countries. The use of gross domestic product (GDP) to measure economic growth made by all countries in the world (including Indonesia). Indonesia's GDP, is an added value that is calculated based all economic activity without distinguishing its owner (conducted by Indonesian citizens and foreign nationals), as far as the production process is done in Indonesia, the added value obtained is Indonesia's GDP, so the growth is actually false, because the added are owned by foreign nationals, namely the value added of the economic activities that use factors of production (capital and labor) foreign owned, such as financial institutions / banking, communications, mining exploration, and other economic activities.
Expenditures in the gross domestic product use, namely:

1. Household consumption
Value shopping is done by households to purchase various types
needs in a given year is called household consumption. Household income received will be used to buy food, buy clothes, pay for transportation services pay for the education of children, paying rent and buying the vehicle. The goods were purchased household to meet their needs and shopping is called consumption. Activities of households for house buy classified as an investment.

2. Government spending
Government purchases divided into two government consumption and government investment. Government consumption is the purchase of goods and services to be consumed, such as paying salaries of school teachers, buy a stationery and paper for use as well as buy gasoline for government vehicles.While government investment is spending to build infrastructure such as roads, schools, hospitals and irrigation.

3. The private sector fixed capital formation
Fixed capital formation of the private sector, or better stated as an investment, essentially means that the expenditure to purchase capital goods to increase production of goods and services in the future. Office building, industrial building, buy equipment manufactures are some forms of expenditure classified as an investment

Factors Influencing national income:

- "The demand and aggregate supply" which shows the relationship Aggregate demand the overall demand for goods and services according to the price level. Aggregate demand is a whole list of goods and services to be purchased by sectors of the economy at various price levels, while the aggregate supply shows the relationship between the overall offer of goods and services offered by companies with a certain price level.

- "Consumption and savings" that consumption is the total expenditure to acquire goods and services in an economy in a given period of time (usually one year), while saving (saving) is part of the income is not released for consumption. Between consumption, income, and savings are closely relationship. It can be seen from the opinion of Keynes known with psychological consumption that addresses the behavior of the people in If consumption is linked to income.

- "Investment" that spending on investment is one important component of aggregate expenditure.

The state's revenues can be calculated with three approaches, namely:
• income approach, by adding up all income (wages, rent, interest, and profit) received household consumption in a country during one certain period in exchange for the factors of production are given to company.
• production approach, by adding the value of all products produced
 A state of the industrial, agricultural, extractive, services and commerce during the period certain. Product value calculated with this approach is the value of the services and finished goods (Not the raw materials or semi-finished goods).
• expenditure approach, by calculating the total expenditure for buy goods and services produced within a country during a specific period. Calculations with this approach is done by calculating expenses performed by four actors of economic activities of the country, namely: households (Consumption), government (Government), capital expenditures (Investment), and the difference between the value of exports minus imports

Definitions Income Per Capita
The per capita income is the average income of a resident of a Contracting State. Variable used to calculate income per capita national income and population. As an economic indicator that measures the level of prosperity of a resident of a Contracting State, the income per capita is calculated periodically, usually one year. The benefits of the calculation of per capita income are as follows:

a. To see the level of a State public welfare comparison from year to year. From the table issued by BPS can be seen that Indonesia's per capita income rose slowly from year to year. Indonesia's per capita income in 1996 was Rp. 2.102 million in 1999, Indonesia's per capita income decreased to Rp. 1761108.5. Why this happened? Due to the prolonged economic crisis that hit Indonesia since 1997.

b. As level comparison data welfare a State to another State. Of income per capita of each country can be seen welfare level of each country. On the list of per capita income of each country views the welfare of each State. On the list of per capita income is seen that revenue reached US $ 21,429 Singapore and Indonesia only reached US $ 839. From the list of Singapore's per capita income reaches 26 times the income per capita of Indonesia. Data was not wrong because the welfare of the population of Singapore is far higher than the welfare of the population of Indonesia.

c. As a comparison of the level of living standards of a country with other countries. By taking basic income per capita from year to year, it can be concluded whether a country's per capita income is low, medium or high. According to World Bank data, Indonesia lower middle income.

d. As the data for take up of the economy. Income per capita can be used as consideration for taking land considerations to take steps in the economic field.

             Stringing words for the change is easy. However, implementing a series of words in the form of movement is sometimes difficult. It takes intelligence and courage to break down and knock down the pillars of corruption is the main obstacle slow pace of economic development and the plenary in Indonesia. Corruption has too long a plague that was never on Target is like "sick Chief, why the treated hand". Combating corruption as only a political commodity, material potent rhetoric of sympathy. Therefore, it takes intelligence to oversee the civil society and make political decisions to prevent further outbreaks of the disease gross corruption in Indonesia. Not easy indeed.


Harian Kompas, 13 Juni 2012,
Gramedia Hikmahanto Juwana, Paper 2006, “Bidang Ekonomi di Indonesia” MPKP, FE,UI.
Mobaryanto, artikel, “Keberpihakan dan Keadilan”, Jurnal Ekonomi Rakyat, UGM, 2004.
Jeremy Pope, “Confronting Corruption: The Element Of National Integrity System”. Transparency International, 2000.

Robet A Simanjuntak, “Implementasi Desentralisasi Fiskal: Problem, Prospek, dan Kebijakan”.  LPEM UI, 2003.

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