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Economic Development Vs Economic Growth - Difference and Comparison
Economic Development Vs Economic Growth - Difference and Comparison
Economic Development Vs Economic Growth - Difference and Comparison
Economic
Growth
Dien Economics
EconomicGrowthisanarrowerconceptthaneconomicdevelopment.Itisan
increaseinacountrysreallevelofnationaloutputwhichcanbecausedbyan
increaseinthequalityofresources(byeducationetc.),increaseinthequantity
ofresources&improvementsintechnologyorinanotherwayanincreasein
thevalueofgoodsandservicesproducedbyeverysectoroftheeconomy.
EconomicGrowthcanbemeasuredbyanincreaseinacountrysGDP(gross
domesticproduct).
Economicdevelopmentisanormativeconcepti.e.itappliesinthecontextof
peoplessenseofmorality(rightandwrong,goodandbad).Thedenitionof
economicdevelopmentgivenbyMichaelTodaroisanincreaseinliving
standards,improvementinselfesteemneedsandfreedomfromoppressionas
wellasagreaterchoice.Themostaccuratemethodofmeasuringdevelopment
istheHumanDevelopmentIndexwhichtakesintoaccounttheliteracyrates&
lifeexpectancywhichaectproductivityandcouldleadtoEconomicGrowth.
Italsoleadstothecreationofmoreopportunitiesinthesectorsofeducation,
healthcare,employmentandtheconservationoftheenvironment.Itimpliesan
increaseinthepercapitaincomeofeverycitizen.
EconomicGrowthdoesnottakeintoaccountthesizeoftheinformaleconomy.
Theinformaleconomyisalsoknownastheblackeconomywhichis
unrecordedeconomicactivity.Developmentalleviatespeoplefromlow
standardsoflivingintoproperemploymentwithsuitableshelter.Economic
Growthdoesnottakeintoaccountthedepletionofnaturalresourceswhich
mightleadtopollution,congestion&disease.Developmenthoweveris
concernedwithsustainabilitywhichmeansmeetingtheneedsofthepresent
withoutcompromisingfutureneeds.Theseenvironmentaleectsarebecoming
moreofaproblemforGovernmentsnowthatthepressurehasincreasedon
themduetoGlobalwarming.
Economicgrowthisanecessarybutnotsucientconditionofeconomic
development.
Comparison chart
GDP
Compare Anything
Economic Development
Economic
Growth
Implications Economicdevelopmentimplies
Economicgrowthreferstoan
vs.
GNP
GO
anupwardmovementofthe
entiresocialsystemintermsof
income,savingsandinvestment
alongwithprogressivechanges
insocioeconomicstructureof
country(institutionaland
technologicalchanges).
Factors Developmentrelatestogrowthof
humancapitalindexes,a
decreaseininequalitygures,
andstructuralchangesthat
improvethegeneralpopulations
qualityoflife.
Measurement Qualitative.HDI(Human
DevelopmentIndex),gender
relatedindex(GDI),Human
povertyindex(HPI),infant
mortality,literacyrateetc.
Eect Bringsqualitativeand
quantitativechangesinthe
economy
Relevance Economicdevelopmentismore
relevanttomeasureprogressand
qualityoflifeindeveloping
nations.
Scope Concernedwithstructural
changesintheeconomy
increaseovertimeinacountry`s
realoutputofgoodsandservices
(GNP)orrealoutputpercapita
income.
Growthrelatestoagradual
increaseinoneofthe
componentsofGrossDomestic
Product:consumption,
governmentspending,
investment,netexports.
Quantitative.Increasesinreal
GDP.
Bringsquantitativechangesin
theeconomy
Economicgrowthisamore
relevantmetricforprogressin
developedcountries.Butits
widelyusedinallcountries
becausegrowthisanecessary
conditionfordevelopment.
Growthisconcernedwith
increaseintheeconomysoutput
Michael Green: What the Social Progress Index can reveal about your country
References
BusinessEconomicsbyDr.Ch.Mahender
Economics/Society:Markets,MeaningsandSocialStructurebyBruceG.Carruthers,SarahL.Babb
2000
SustainabilityinaChangingWorldYouTube
Related Comparisons
GrossDomesticProduct
NominalGDP vs Real
Monetary vs Fiscal
(GDP) vs GrossNational
GDP
Policy
Gross vs Net
Macroeconomics vs
Product(GNP)
ForeignDirect
Investment(FDI) vs
Microeconomics
ForeignPortfolio
Investment(FPI)
276Comments
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Addacomment...
verygood
37...156
SaaMuliNoiseMakeratKituiCountyJobSeeker'sCorner
Goodstuff.CongratsDiffenforbeingsuchagoodplayerinthefield
ofeconomics
LikeReplyMar8,20165:28am
December11,2013,1:38pm
Icannotexplainhowmuchilearnfromthis.Itwasreallyhelpfulfor
me.
Thankyouverymuch
MdArshadDhakaCollege
37...35
verysmartconcept
LikeReplyFeb11,201610:10pm
YeyeOlabisiFaturotiSalisPanAfricanUniversity
Hmm!Yourarticleiscoherentandexplicit.Itprovidesavivid
similaritiesanddifferencesbetweenecomomicgrowthand
economicdevelopment.AndIhaveaclearerperspectiveofthe
discourse.Thanks.
LikeReplyDec14,20158:57pm
KaramAngralStudyingatJammuUniversity
veryclear
LikeReplyNov27,20155:11am
HAwaeCaHAwaeStudyingatStudent
January8,2012,3:58am
thanksexactlywhatiwaslookingfor
186...111
December29,2011,1:19pm
thatswhatiwaslookingfor,thanksalot.countrylikeTanzaniaalot
ofgovernmentocialsandleadersareproudofEconomicgrowth
whilenothingtodowithdevelopmentofpeopletakingit
considerationcurrentoodswhichhappenedinDaresSalaamall
peopleleavinginslumareasaectedbadly,
41...94
thanks
LikeReplyNov22,201510:34pm
LidyaObyMoshiUniversityCollegeofCooperativeand
BusinessStudies
Ilikethearticlesandexplanation..Thankyou
March14,2014,5:49pm
Hmmmmmm....iluvit
141...65
LikeReplyNov20,20151:31am
AyiteyGideonGhanaInstituteofManagementandPublic
Administration(GIMPA)
December16,2013,10:21am
greatartile
Welldone...gudjob...:):)
LikeReplyNov4,201510:47pm
49...224
MikeJayStatisticianatCentralStatisticalOfficeCSO
awsomearticleanditisstraightonpoint,ihavebenefitedalot.
LikeReplyNov2,201512:28pm
SastoNepalWorksatSastonepal.Com
Itisreallyexcellentresoucesforeconomicsstudents.Thanksfor
sharingthisarticle.
LikeReply
1Oct31,20157:04pm
AjayiOluwaseunVictoriaOwner,CrafterandDesignerat
EMDEEDesigns
Excellentexplanation
LikeReplyOct28,201510:03am
DessalewKassaBahirDarUniversity
Agoodreference
LikeReplyOct27,20151:55am
MahlonEbipiriNigerDeltaUniversity,WilberforceIsland.
Thisgreatinhasbeenhelpfulltometanks
LikeReplyOct11,20151:43pm
WamakaSikweseMzuzu
allhelpful
LikeReplyOct7,201512:33am
WamakaSikweseMzuzu
allhelpful
LikeReplyOct7,201512:32am
EdMacalandagCityAdministratoratLGUTagbilaranCity
Veryeducational
LikeReplyAug3,20156:03pm
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December20,2011,1:14pm
GOODJOB.................................
122...140
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