The Relationship between Economic Development and Social Welfare: A New Adjusted GDP Measure of Welfare

Existing literature focuses on the issue ofpreparation of social welfare measurements onthe basis of an unadjusted Gross DomesticProduct (GDP). This paper extends this methodto incorporate cost-benefit analysis ofeconomic growth in a growing economy incalculating the adjusted GDP, termed as thecost-benefit (CB)-adjusted GDP. This approachis empirically applied to Thailand. There arestark differences between GDP per capita and CBadjusted GDP per capita rates for this period.This paper concludes that GDP can be used as anindicator of social welfare if the GDPestimates are undertaken within a cost-benefitanalysis framework.