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Major Uses of PPP Results

Major uses of the PPP results at international and regional levels include:

 International poverty headcount index (World Bank)

 Comparing relative sizes of economies and estimating weighted averages of regional growth rates (IMF)

 Allocation of structural and cohesion funds (European Commission)

 Human Development Index (UNDP)

 Gender empowerment measures (UNDP)

 Health inequality assessment (World Health Organization)

 Assessing per capita expenditures in education (U.N. Educational, Scientific and Cultural Organization)

 Monitoring the welfare of children (U.N. Children’s Fund)

 Designing effective aid programs (International Organizations)

Other uses include:

 Analysis of an economy’s comparative advantage on prices and expenditures of goods or services (Policy Makers)

 Evaluation of investment costs and industry growth potential across countries

 PPP adjusted cost of living allowances (Multinational Corporations, Non-Government Organizations, International Development Agencies)




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