Assessing Sustainable Development by Genuine Saving Indicator from Multidimensional Perspectives

This paper investigates the path of genuine saving (GS) based on the perspectives of average, trend and stability. The theoretical basis of GS can be seen in several studies, such as Arrow et al. (2003) and Dasgupta (2004); its database has been developed by the World Bank. With these contributions, GS is now considered as one of the most important indicators for evaluating the sustainable development. However, among previous studies on GS, only few studies focused on dynamic perspective. This paper points out this shortage in the literature, and then re-examines the sustainability performance in various countries based not only on the average, but also on the trend and stability of GS path. The results of evaluating GS based on these multidimensional perspectives are different from those of unidimensional perspective. These results provide us richer information on the sustainability of each country.