Differentiate economic growth from economic development. Difference Between Economic Growth and Economic Development 2022-10-17
Differentiate economic growth from economic development Rating:
8,1/10
1359
reviews
Economic growth and economic development are two terms that are often used interchangeably, but they refer to different concepts. Economic growth refers to an increase in the production of goods and services in an economy over a period of time. It is typically measured by the gross domestic product (GDP) of a country, which is the total value of all goods and services produced within a country's borders in a given year.
On the other hand, economic development refers to a broader concept that includes not only economic growth, but also improvements in other areas such as education, healthcare, infrastructure, and social welfare. Economic development is often used to describe the process by which a country or region transitions from a low-income, underdeveloped economy to a high-income, developed economy.
One key difference between economic growth and economic development is the focus on short-term versus long-term improvements. Economic growth is typically focused on increasing the production of goods and services in the short-term, whereas economic development is more concerned with creating a sustainable, long-term improvement in living standards.
Another difference between economic growth and economic development is the emphasis on quantitative versus qualitative improvements. Economic growth is typically measured in terms of the increase in GDP, whereas economic development is more concerned with the overall quality of life and well-being of a society. This includes factors such as access to education, healthcare, and other social services, as well as measures of poverty and inequality.
In conclusion, economic growth and economic development are related but distinct concepts. Economic growth refers to the increase in the production of goods and services in an economy over a period of time, while economic development encompasses a broader range of improvements in areas such as education, healthcare, and social welfare. Understanding the differences between these two concepts is important for policymakers and others seeking to promote sustainable, long-term improvements in living standards and quality of life.
Difference between Economic Growth and Economic Development
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. Economic Development is related to developing countries of the world. In fact, some people incorrectly also use the term interchangeably, though this cannot be further from the truth. The HDI tracks the course of development of countries over periods of time. It alludes to a considerable rise in the per-capita national product, over a period, i. Economic development is a long term process to improve the quality of life.
Human Development Index HDI , Human Poverty Index HPI , Gini Coefficient, Gender Development Index GDI , The end of inequality and poverty is linked to accomplishing economic development. Furthermore, all technologies play a part in the business as a whole. It is a policy intervention endeavor which seeks to ensure that all economic, political, and social endeavors are working to improve the quality of life for their citizens. Both of them have their flaws and advantages and clearly both appeal to different target audiences. The informal economy is also known as the black economy which is unrecorded economic Economic growth is a necessary but not sufficient condition of economic development. Population growth also comes into the picture here since economic growth is composed of population growth and per capita income growth.
Difference Between Economic Growth and Economic Development
Economic Growth Economic Development Concept Narrower concept than economic development Broader concept than economic growth. Economic development, on the other hand, is something else. However, it is seen that in general, when there is economic development, economic growth is invariably there. S GDP 1960-2020 What is economic development? Effect Qualitative and Quantitative Impact on the economy. Governments are constantly under pressure due to environmental issues, the majority of which are caused by global warming.
Difference Between Economic Growth and Economic Development (with Comparison Chart)
Infrastructure levels Increased investment in roads, railways, and seaports, for example, has improved economic development in Asian and African countries in recent years. Also Check:Â What is Economic Development? As the former uses various indicators to judge the progress in an economy as a whole, the latter uses only specific indicators like gross domestic product, individual income etc. Suggested read: Economic development appeals to countries that are developing and knows that it will be a long process. It is an increase in a country's real level of national output which can be caused by an increase in the quality of resources by Economic development is a normative concept i. Yes, you can tell the difference as when there is perceptible difference in the lifestyles of the people of the country but development is not just confined to income levels and encompasses many more indicators such as life expectancy, education, health and many other factors that go into improving the quality of life.
Difference between Economic Growth and Economic Development
Labor Force The higher the number of workers, the greater the number of hands accessible. Development indicators and indices Gross domestic product GDP GDP per capita — Growing development population Income distribution Literacy and education Access to Healthcare Social security and pensions Modern transportation Measurement Quantitative. Improvement in life expectancy rate, infant mortality rate, literacy rate and poverty rates. It is important for the right type of workers to flow to the right jobs in the right places in harmony with the right types of capital goods in order to realize their productive potential. It brings quantitative changes in the economy.
Economic Growth is related to developed countries of the world. In this post, you will find all the substantial differences between these two. Here, you should know that economic growth is an essential but not the only condition for economic development. Economic Development is a much more broad term than Economic Growth. While economic growth corresponds to market productivity and rise in GDP, economic development, on the other hand, deals with the economic and social well-being of people. Wealth distribution Economic Growth does not focus on fair distribution of wealth among the people in the country.
Difference Between Economic Growth and Economic Development
In other words, the economic development includes economic growth. In short, economic development, as See more:. Economic growth is defined as an increase in the monetary value of all goods or services produced in the economy over a given period. It is a multi-dimensional approach that looks into the income as well as the quality of life of a nation.                                         Term Short-term process Long-term process                                     Measurement Quantitative Both quantitative and qualitative                                     Applicable to Developed economies Developing economies                                  Government Support It is an automatic process that may or may not require intervention from the government It requires intervention from the government as all the developmental policies are formed by the government                                Kind of changes expected Quantitative changes Quantitative as well as qualitative changes                                      Examples GDP, GNP HDI, per capita Income, industrial development This article helps students gain a broader understanding of the concepts of economic growth, economic development, and the difference between them. Economic growth is relatively narrow concept as compared to economic development. It is concerned with how people are affected.
Difference Between Economic Growth and Development
Depiction of economic growth Economic growth is commonly measured by the increase in the average market value of additional goods and services produced, using GDP How is GDP calculated? Growth is a necessary condition for development, but alone it cannot guarantee development. Improvement in life expectancy rate, infant, literacy rate, poverty rates, and mortality rate. This number is then compared to other time periods to see whether or not the economy is producing more. Economic growth is more relevant metric for assessing progress in developed countries. It considers factors such as health, education, working conditions, domestic and international policies, and market conditions with a focus on improving conditions in developing countries. For example, in recent years, economic development in parts of Africa and Asia have been improved due to increased investment in roads, railways and seaports.
