Questions about the magnitude of foreign outsourcing have caused some to suggest that imports of services may be understated and growth in gross domestic product (GDP) overstated. Some have pointed to alternative measures of output that suggest less rapid economic growth than exhibited by the GDP estimates. These include (1) slower growth in gross domestic income (GDI), which is conceptually identical to GDP, but is based on measures of the incomes derived from production while GDP is based on measures of final expenditures, and (2) slower growth in the industrial production index (IPI), which is published by the Federal Reserve Board, than in GDP goods, which is published by BEA.
Published