Economic growth and economic development difference. What is Economic Growth and Economic Development? 2022-10-23
Economic growth and economic development difference Rating:
Economic growth and economic development are two closely related concepts that are often used interchangeably, but they have distinct meanings. Economic growth refers to an increase in a country's production of goods and services, typically measured by the gross domestic product (GDP) or gross national product (GNP). It is a broad measure of a country's economic performance that captures the increase in the value of the goods and services produced in a given period, typically a year.
On the other hand, economic development refers to the process of improving the economic, social, and political well-being of a country's citizens. It is a more holistic measure of a country's progress and is often used to assess the overall quality of life in a society. Economic development takes into account a wide range of factors, including income, education, healthcare, infrastructure, and political stability.
While economic growth is an important component of economic development, it is not the only factor. Economic development also involves improvements in other areas that contribute to the well-being of a society, such as education, healthcare, and infrastructure. A country can experience economic growth without necessarily experiencing economic development if the benefits of that growth are not widely shared among the population.
There are several key differences between economic growth and economic development. First, economic growth is a narrow measure that focuses solely on the increase in a country's production of goods and services. Economic development, on the other hand, is a broader concept that takes into account a wide range of factors that contribute to a country's overall progress and well-being.
Second, economic growth is typically measured in terms of the increase in a country's GDP or GNP, while economic development is often measured using a variety of indicators, such as the Human Development Index (HDI), the Gender Development Index (GDI), and the Multidimensional Poverty Index (MPI). These indices are designed to capture a more comprehensive picture of a country's progress and well-being.
Finally, economic growth and economic development can sometimes be at odds with one another. For example, a country may experience rapid economic growth through the exploitation of natural resources, but this growth may come at the expense of long-term economic development. Similarly, a country may focus on economic development through investments in education and healthcare, which may not necessarily result in immediate economic growth.
In conclusion, economic growth and economic development are two closely related concepts that are often used interchangeably, but they have distinct meanings. Economic growth refers to an increase in a country's production of goods and services, while economic development refers to the process of improving the economic, social, and political well-being of a country's citizens. While economic growth is an important component of economic development, it is not the only factor, and the two can sometimes be at odds with one another.
Economic Growth and Development
The accumulation of Heavy Industry business capital represents the process of industrialization, wherein the resource and technology is acquired and assimilated helping the modernization process of the country. Improvement in life expectancy rate, infant, literacy rate, poverty rates, and mortality rate. An economy whose growth rate is high provides a promising business prospect and thus builds business confidence. Economic Development is a long term process because to develop various facilities to improve the life of the people takes more time. In the short term, seasonal or short-term rises in income should not be seen as economic growth.
In short, it is the progress in the socio-economic structure of the economy. Economic growth attracts developed countries who want fast and easy stats about the increase in the income of the nation. Consumers having more money to buy additional goods and services, increases the economic growth. It is a quantitative measure that reflects the potential increase in the number of business transactions taking place in the economy. However, Economic Development can be measured through improvement in the life expectancy rate, infant mortality rate, literacy rate, and poverty rates. Aside from the economic recession of 1920 and 1921, when by some estimates unemployment rose to 11.
Concern The concept of economic growth is generally concerned with the economic progress of developed countries. An increase in capital goods, labour forces, new territories, technology, and human capital can also contribute to economic growth. Thus, in any economy, economic growth occurs when the economy achieves an increase in its National Income NI , in excess of its rate of population growth. The coronavirus pandemic is supposed to cause a decrease in Life expectancy by 1-9 years. I also hold immense experience in working closely and persistently with government organizations, non-government organizations, UN agencies, CSOs and other stakeholders at the national and sub-national level.
Difference Between Economic Growth and Economic Development
A successful The national capital stock and economic growth are interlinked in the follower manner and through the concept of Capital-income. Economic development focuses on distribution of resources. Must read: Economic growth Economic growth is considered to be an increase in the production of goods and services by per person in a population, compared from one time period to another. Objective The objective of economic growth is to increase the pace of economic prosperity. The term growth of human beings simply means the increase in their height and weight which is purely physical.
Difference Between Economic Growth and Economic Development
But that same exuberance led to asset bubbles and an Economic Growth and Output The economy grew 42% during the 1920s, and the United States produced almost half the world's output because World War I devastated large parts of Europe. When not writing, you can find me spending time with family, singing, playing piano, and painting. The extra hands help in increasing the output. This is why economic development can happen with economic growth but it is not necessary if economic growth is taking place then economic development will also happen. Related blog: Economic development Economic development is the increase in the standard of living from a low-income economy to a high-income economy. It is a quantitative measure that shows the increase in the number of commercial transactions in an economy. Scope Concerned with structural changes in the economy Growth is concerned with increase in the economy's output Anonymous comments 5 May 4, 2014, 2:44pm very good — 37.
This will lead to an increase in GNP per capita. Banks also profited by lending to new car owners. Indicators Economic growth is indicated by the increase in gross domestic product Economic development is indicated by the quality of living standards, increase in life expectancy, Scope The scope of the economic growth is narrow as compared to the scope of the economic development. When will it happen? In the underdeveloped countries of the world, there is an existence of poverty. It is more abstract concept.
The stock market crashed on Oct. The economic trend in a country as a whole is the major component of its business environment. It is the subset of economic development. As a writer for The Balance, Kimberly provides insight on the state of the present-day economy, as well as past events that have had a lasting impact. Increases in Effect Brings Brings quantitative changes in the economy Relevance Economic development is more relevant to measure progress and quality of life in developing nations. Here, you should know that economic growth is an essential but not the only condition for economic development. The cookie is used to store the user consent for the cookies in the category "Other.
Difference Between Economic Growth and Economic Development (with Comparison Chart)
Therefore, international organizations like the World Bank and IMF have been using both measures of economic growth in their annual World Development Reports for comparing growth with levels of living standards f the developed and the developing countries. This is called economic growth. Comparison chart Economic Development versus Economic Growth comparison chart Economic Development Economic Growth Implications Economic development implies an upward movement of the entire social system in terms of income, savings and investment along with progressive changes in socioeconomic structure of country institutional and technological changes. Conclusion Economic development seems to be the overall champ in calculating the progress of a country but Economic growth provides easy and reliable stats of development in developed countries. Economic growth can be considered a weak approach to measure growth as not only growing economically is necessary but also social well-being is just as important. It refers to increase in productivity. It is concerned with happiness of public life.