Difference Between Economic Growth and Economic Development

Topics: Economics, Economic growth, Gross domestic product Pages: 2 (308 words) Published: September 27, 2012
Difference between Economic Growth and Economic Development :- Economic Growth is an issue considered by economically developed countries which have utilized many of their resources and now plan to expand even further by growth. It is a narrower concept than Economic Development as it focuses on the further increase of the national output of a country by increasing the quality of resources, the quantity produced and increasing utilization by every sector of the economy. We can also say it is defined as the increase in GDP and national income of a country. (yet increase in GDP may not necessarily mean development has occurred) Economic Development on the other hand is an important issue in poor countries which focus mainly on the welfare of the citizens of the country. It implies increase in national economic growth in sectors of education, employment and healthcare and increase in the per capita income of every citizen by creating more job opportunities by allocating resources in a better manner. It takes into account factors such as unemployment, literacy and life expectancy which contribute to the overall productivity of a country. It works for the overall well-being of the people and is a normative concept (the moral rights that the people deserve). Hence we can say that,

Economic Development
1. Is Single dimensional i.e. increase in output alone.
2. Involves Quantitative Changes-Change national and per capita income. 3. Is Spontaneous in character.
4. Includes Continuous Change.
Economic Growth
1. Is Multi-dimensional i.e. more output and changes in technical and institutional arrangements. 2. Involves Qualitative Change-Change in composition and distribution of national and per capita income and change in functional capacities. 3. Is Regulated and controlled in character.

4. Includes Discontinuous Change.

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