Home Page                Contact Us                About Us                Privacy Policy                Terms of Use                Advertise               

 

Home Economic Development Economic Development Vs Economic Growth

Economic Development Vs Economic Growth:

 

Difference Between Economic Development and Economic Growth:

 

Simply by, "Economic Development" we mean the continuous increase in real income of a country over a long period of time. Moreover, it is also furnished with technical and industrial changes in the society. Like development, the economists also present the concept of "Economic Growth". The economic growth represents increase in the production of goods and services of a country. Moreover, it is attached with the increase in the efficiency of the factors of production.

 

From such simple definitions we find that economic development is a qualitative term while economic growth is a quantitative term. As the increase in the quantity or volume of a thing denotes its growth. Therefore, if a country's output, national income, per capita income, consumption, savings and investment increase, such phenomenon

represents growth. Therefore, if the level of national production increases due to better use of factors of production, better techniques of production or better organization, it represent economic growth.

 

In the words of Kindleberger:

 

"Economic Growth means more output and changes in the technical and institutional arrangements. Growth not only implies more output but also more efficiency and more inputs. While Economic Development is a wider concept and it goes beyond the changes in the structure of output and allocation of inputs".

 

In the early stage, any economy that grows is likely to develop and that which develops is likely to attain growth. But the countries who have already developed as US, UK, Germany, France and Australia etc., are desirous to keep on growing. While in the case of UDCs which have low incomes, growth and development go side by side.

 

Thus we conclude that economic development means a sustained, secular improvement in material well-being which may be reflected in an increasing flow of goods and services. As the definition of development has been presented in material terms. Thus it includes social, cultural, political, moral and economic factors which contribute to material progress.

 

Thus economic development is economic growth because it aims at growing of the production of material commodities and services. It is social because it implies institutional changes in the society. It is moral because the idea of equality and social justice is involved in it. It is cultural because development policies imply a profound revolution.

 

Thus we say that Economic Development is wider than Economic Growth.

Relevant Articles:

Why Economic Development

Lorenz Curve and GINI-Coefficient

Economic Development Vs Economic Growth
Different Definitions of Economic Development
Measurement of Economic Development By Traditional Approach
Approaches to Economic Development/Measurement of Economic Development in Terms of Quality of Life
Physical Quantity of Life Index (PQLI)
Growth of GNP Versus Basic Needs Approach
Human Development Index (HDI)
Good Governance and Humane Governance Index
Measurement of Humane Governance/Good Governance
Measurement of Economic Development with Combining GDP and Life Expectancy
Growth Versus Distribution
Re-Distribution with Growth (RWG)
International Inequalities
New/Modern Economic View of Development
Human Poverty Index (HPI) as a Measure of Economic Growth
 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance
History of Money

 

                   Home Page                Contact Us                About Us                Privacy Policy                Terms of Use                Advertise               

All the material on this site is the property of economicsconcepts.com. No part of this website may be reproduced without permission of economics concepts.
All rights reserved Copyright
2010 - 2012