Economists often tend to use the two terms economic development and economic growth interchangeably, as they appear to be synonymous with each other.
The economic development of a country is defined as the development of the economic wealth of the country. Economic development is aimed at the overall well-being of the citizens of a country, as they are the ultimate beneficiaries of the development of the economy of their country.
Economic development is a sustainable boost in the standards of living of the people of a country. It implies an increase in the per capita income of every citizen. It also leads to the creation of more opportunities in the sectors of education, healthcare, employment and the conservation of the environment.
Economic growth on the other hand, is a narrower concept than economic development. It is defined as the increase in the value of goods and services produced by every sector of the economy. It is usually expressed in terms of the gross domestic product or GDP of the country.
THE MAIN DIFFERENCE BETWEEN TWO ARE THE FOLLOWING:
1}Economic growth measures the changes in per capital income only. Economic development on the other hand measures other changes in addition to changes in per capital income.
2}Economic growth takes into account quantitative changes in the economy and economic development on the other hand also take into account qualitative changes in the economy.
3}The concept of economic development is wider than the concept of economic growth .
Economic development refers to the availability of the basic needs of the people which include food ,shelter,protection and health..it also refers to the increase level of living which include increase in employment,elimination of poverty,elimination of unequal distribution of income.and also the availability of choices and freedom from servitude that they are free 4m dependence of people and of other nation state and also the forces of human misery and ignorance
while economic growth is defined as the ability to provide wide range of goods and services which indicate economic maturity,the rise in national output clearly shows the economic growth.
Economic growth is an increase in the productivity of the economy so that they will be an increase in the level of gdp,gni and gnp. Is just increase in amount of goods and services produced . Economic development refer to both increase in amount of goods and services produced and also the improved living standard and freedom of choice. Is the broader discipline than economic growth. Tp malatje
To say the fact growth involves increase in size, or cell number.. But development also includes morphogenesis, differentiation of tissues.... This is the primary difference b/w these two terms... Eg..supose you have 2 tadpoles, one growing in normal water, other with anti thyroxine( thio urea)... Then.. One in normal water will show development + growth.. While one in thio-urea pollluted water will show only growth, not development there is not much difference growth means increase in size, stature,cell number etc. Development means improvement of organs, increase in their efficiency of functioning that is generally accompanied by growth. Growth is the enhancement in the activity of physical aspects wheras sevelpoment involves enhancement in both physical and physiological aspects. By Ogunsola Taiwo Matthew Mechanical Engineer by profession
Economic Growth refers to the increase in the amount of goods and services that are produced in an economy over a period of time. It is actually measured as a percentage. Real GDP is the main measure of Economic Growth.
On the other hand, Economic Development is the development of economic wealth of an economy. Through Economic Development, the political, economic, and social well being of the people is improved. It also ensures quality of life regardless of how many goods and services are being produced.
The economic growth og (G,D,P) does not mean an improvement of living standard (living level of the local population. To improve the living standard of the population the economic growth should be coupled with less inequality of incom distribution prove or disprove this statement and justify your answer
Economic development is a process whereby economy's real income increases over a long period of time,the rate of increase in real income is greater than rate of increase in population then per ca pita income also increases on the other hand, economic process is a steady process by which the productive capacity of economy is increased overtime to bring about levels of national income and output.
Development is defined as a discontinued and spontaneous changes which alters the equilibrium state and whereas growth is an steady and continued change which comes by gradual increase in the level of saving and population. The term economic development refers to the problems of under develop countries and economic growth is taken as a term for developed countries. The rising of income level in rich countries is generally called economic growth and in poor countries, economic development. Economic growth is related to a quantitative increase in the country's per capita output accompanied by expansion of its labour force consumption, capital or trade. Economic development is a wider term as it involves quantitative changes in economic wants, goods, incentives and institutions. Economic development implies improved performance, improved techniques, attainment of ideas of modernization.
Economic development implies more,particularly improvements in health,education and other aspects of human welfare. Whereas, economic growth refers to a rise in national or PCI and product. Manasi bid
The distinction is a subtle one. Economic growth means simply an increase in income. Economic development, on the other hand, refers to deeper structural changes in a society.
Perhaps it is best illustrated with an example. Let's say that the only economic activity in an underdeveloped country other than subsistence agriculture is banana-growing for export. And let's say that the price of bananas on the world market increases. Well, the country has more income now so it has experienced economic growth. But its only significant economic activity is still banana export so it has not really experienced economic development.
Signs of real economic development would be such things as the development of a middle class, a sophisticated banking system, improving literacy levels, a domestic manufacturing industry and the like.
Economic development is the economic wealth of the country which is aimed at the overall well being of the citizens of a country as they are the ultimate beneficiaries of the development of the economy of their country whereas Economic growth is the increase in the value of goods and services produced by every sector of the economy that is usually expressed in terms of gross domestic product of the country.By Deccah Sebhati
Just going to use some commonsense here! I am no economist so bear with me!
Economic development causes economic growth. It works the other way also. Economic growth causes economic development. Building a McDonalds is economic development. That same McDonalds selling a million happy meals is economic growth, which in turn causes more economic development when that McDonalds decides to build 2 more McDonalds, which will cause more economic growth. I believe the markets truly are commonsense, we just let some pretty nasty people convince us that we needed them to watch out for things. Sorta like the government! I know this is not the answer you would get in a classroom but it is a lot shorter and cheaper! Have a great day!
When living standards are taken into account alongwith the country's economic growth. If people living standard improves with a rise in real GDP (Economic Growth) then there is an economic development. Acording to Michael Todaro there are three aspects of development. Sustenance that is an improvement in income, self esteem ...the experience of being competent to cope with the basic challenges of life and being worthy of happiness and Freedom from survitude...freedom of choice.
Economic growth is an increase of per capita income of the country and on the other hand, economic development is a wider term and it is used for under developed and developing country and economic growth is used for developed countries.
