Economic growth and Economic Development .

Economic growth

🌱Economic Growth is the positive change in the indicators of economy.

🌱Economic Growth refers to the increment in amount of goods and services produced by an economy.

🌱Economic growth means an increase in real national income / national output.

🌱It refers to an increase over time in a country’s real output of goods and services (GNP) or real output per capita income.

🌱Economic growth is single dimensional in nature as it only focuses on income of the people.

🌱Earlier, economic growth was only measured in terms of Gross Domestic Product (GDP).

🌱At present, it is measured in terms of GDP, Gross National Income (GNI) and Per Capita Income.

🌱Economic Growth is the precursor and prerequisite for economic development.

🌱Indicators of economic growth are GDP, GNI and per capita income.

🌱Economic growth relates a gradual increase in one of the components of GDP; consumption, government spending, investment or net exports.

🌱It is also considered as a traditional measure of development which indicates the quantitative rise of economy.

🌱Economic growth only looks at the quantitative aspect. It brings quantitative changes in the economy.

🌱Economic growth is concerned with increase in economy’s output.

🌱It focuses on production of goods and services.

🌱Economic growth is more relevant metric for assessing progress in developed countries.

🌱Economic growth is relatively narrow concept as compared to economic development.

🌱It is for short term/short period.

🌱It is a material/physical concept.

🌱Economic growth is measured in certain time frame/period.

Economic development

🌳Economic development is the quantitative and qualitative change in an economy.

🌳Economic development refers to the reduction and elimination of poverty, unemployment and inequality with the context of growing economy.

🌳Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.

🌳Economic development includes process and policies by which a country improves the social, economic and political well-being of its people.

🌳Economic development is multi-dimensional in nature as it focuses on both income and improvement of living standards of the people.

🌳Economic development is concerned with the happiness of public life.

🌳Economic development comes after economic growth. It is a positive impact of economic growth.

🌳Economic development also refers to:

🌱provision of sufficient and effective physical and social infrastructures

🌱equal access to resources

🌱participation of all in economic activities

🌱equitable distribution of dividends of economy.

🌱Economic development= Economic growth + standard of living

🌱It refers to increase in productivity.

🌱Indicators of economic development are:

Human Development Index (HDI)

Human Poverty Index (HPI)

Gini Coefficient

Gender Development Index (GDI)

Balance of trade

Physical Quality of Life Index (PQLI)

🌱Economic development is the ends of development.

🌱Achieving economic development is linked with end of poverty and inequality.

🌱It is more abstract concept.

🌱Economic development focuses on distribution of resources.