QUALITATIVE DIMENSIONS OF ECONOMIC GROWTH: A NEW PERSPECTIVE

Scientific efforts are aimed at evaluating and improving quality rather than increasing quantity. Economic growth can be characterized as high quality, when it is inclusive, environmentally friendly, sustainable and effective, ensures technological progress, improves the well-being of society and boosts the competitiveness of country. We propose to distinguish two main dimensions in measuring the quality of economic output, which refer to its generation and effects. Based on this principle, an index of quality of economic output has been calculated for 78 countries spanning from 2005 to 2022. It turns out that underperforming countries struggle to effectively translate the formed economic output quality into high-quality manifestations. On the other hand, they had better prioritize expansion of the production frontier rather than optimize production process itself. In addition, an online platform has been developed for monitoring quality of economic output, performing simulations and processing policies aimed at enhancing the qualitative aspects of economies.