The NNP and Sustainability in Open Economy: Highlights
on Recent World Economy and on Open Economy of
Bangladesh
Haradhan Kumar Mohajan
Abstract
This paper discusses the theory of the net national
product and, emphasizes on social welfare and
sustainable accounting in open economy. It is observed
that the world economy following an egalitarian path,
the aggregate capital gains being positive is equivalent
to the interest rate tending to decrease. This is
important for the concept of net national product in
open economies. Martin Weitzman gives a foundation for
net national product as the stationary equivalent of a
wealth maximizing path when there is a constant interest
rate and no exogenous technological progress. The NNP
should equal the maximum consumption level that can be
sustained. The ordinary Hartwick rule gives a sufficient
condition for constant consumption in a closed economy
with constant population and stationary technology. An
attempt has been taken in this paper to discuss the net
national product and sustainability in open economy. The
paper also highlights the recent world economy and the
open economy of Bangladesh.
JEL. Classification: B22; F41; F43
Keywords: Net national product, Open economy, Social Welfare and Sustainability.
