Problems associated with National Income Accounting in developing countries

Main problems of National Income Accounting:

  • Incomplete/inadequate information
  • Danger of double counting
  • Changes in prices (price instability)
  • Problem of inclusion, in terms of:
  1. Subsistence output/income
  2. Intermediate goods
  3. Housing i.e. rent on owner-occupiers
  4. Public services provided by the government
  5. Foreign payments i.e. net income from abroad
  6. Illegal activities eg. smuggled output
  7. Revaluation of assets

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