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    Economic Growth Vs Economic Development

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    Economic Growth Vs Economic Development

    Uploaded by

    miadjafar463
    15 views9 pages

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    Economic Growth vs Economic Development

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    15 views9 pages

    Economic Growth Vs Economic Development

    Uploaded by

    miadjafar463

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 9

    Economic Growth Vs

    Economic Development

    Dr. Siby Abraham


    Email: sibyabrahamc@gmail.com
    Economic Growth Vs
    Economic Development

    • In general, both the terms are used interchangeably to


    express ‘Economic Advancement’.

    • Economic Development is a more comprehensive


    term than economic growth.

    • Growth refers to persistent increase in per capita


    income. Development include growth plus structural
    changes.
    Economic Growth
    • Michael P. Todaro: Economic growth is a steady
    process by which the productive capacity of the
    economy is increased over time to bring about rising
    levels of national output and income.

    • Simon Kuznets: Economic growth may be defined as


    a long term process wherein the substantial and
    sustained rise in real national income, total population
    and real per capita income takes place.
    Economic Development

    • Michael P. Todaro: Development refers to a multi-


    dimensional process involving major changes in
    social and institutional structures as well as the
    acceleration of eco-growth, poverty eradication and
    the reduction of inequality of wealth.

    • It refers to increase in living standards, improvement


    in self-esteem needs, freedom from oppression,
    greater choice.

    • Takes into account the size of the informal economy.


    Growth Vs Development - Example

    • Take an example of a human being:

    The term growth of human beings simply means the


    increase in their height and weight which is purely
    physical.
    But in case of human development, it will take into
    account both the physical and abstract aspects like
    maturity level, attitudes, habits, behaviour, feelings,
    intelligence and so on.
    Key Differences
    Economic Growth Economic Development
    • Positive change in the real • Rise in the level of
    output of the country in a production along with the
    particular span of time. advancement of technology,
    improvement in living
    standards and so on.

    • Economic growth is an • The outcome of planned and


    automatic process result-oriented activities.

    • Enables an increase in the • Enables improvement in the


    indicators like GDP, per life expectancy rate, infant
    capita income etc. mortality rate, literacy rate
    and poverty rates etc.
    Key Differences
    Economic growth Economic Development
    • Short-term process which • A long term and continuous
    takes into account yearly process.
    growth of the economy.

    • The main concern of


    • Mostly the problem of
    developed countries. developing countries.

    • Results in quantitative • Results in both quantitative


    changes. and qualitative changes.

    • Measured at a particular • Measured over a period of


    point of time. time.
    Conclusion
    • Economic development is a much bigger concept than
    economic growth. Economic development includes
    economic growth. Economic growth is a necessary
    but not sufficient condition of economic
    development.

    • While GDP indicates economic growth, economic


    development is gauged by Human Development
    Index (HDI).

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