Analysing Economic Growth And Economic Development (Macro_economics)

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Introducing both terms

The two terms namely Economic growth and Economic development are the important indicators for measuring the rate of growth in the economy which leads to gradual development. If a country can produce More output, The level of employment will be very high which leads to high level of consumption, Demand, Supply, equal distribution of income, etc. as a result, Gradually there is an improvement in the infrastructure, well-being, growth in both social and economical dimensions. So, We can conclude that the measurement of economic growth is for short period. whereas, Economic development can be achieved with economic growth in long period or long-term.

Economic growth

Simply the term economic growth refers to an increase in the real output of the country

or we can say an increase in the value of all goods and services produced by every sector of the country. Economic growth can be measured by an increase in a country’s gross domestic product  That is GDP. 

• Economic growth refers to an increase in the true output that is goods and services of the country.
• Economic growth is a single dimensional Phenomenon. Because we've already told that it consider only the total income of a country.
• Economic growth explains primarily about quantitative changes in the economy. We can measure the total output and income and compare every year in quantity.
• The government may or may not play an active role in economic growth.
• Economic growth is the key issue in traditional Economics. (Micro economics).
• The scope of economic growth is narrow because it is related to only the change in total income.
• Economic growth is considered as shortterm process because it’s time is  limited for 1 year. Generally National income is measured for every 1 financial year.
• Economic growth is more relevant or closely related to developed countries.
• Economic growth concern with only the change in aggregate output and income.
• Economic growth can be measured numerically by comparing the national Income in every year.
• Finally Economic growth is a valuable indicator to measure  the development of a country in terms of total output and income.

Economic Development

As we've written above Economic development is a wider concept than Economic growth. It 

includes not only economic growth but also includes the progress in the socio Economic structure of 

a country. It requires Improvement in well-being of people, education, infrastructure, social status, technology, awareness, number of things.

• Economic development refers to a change in socio economic structure of a country along with economic growth.
• Economic development is a multi-dimensional phenomenon. It cannot be measured on a 1 particular thing.
• Economic development explains the both quantitative Qualitative changes in the economy.
• The government surely plays an active role in economic development.
• Economic development is main issue in the modern economic literature. (Macro economics).
• The scope of economic development is wider because it is highly concerned with well-being of society and the economy.
• Economic development is a long-term process. It takes time about 25 to 30 years.
• Economic development is more relevant issue or closely related to developing countries.
• Economic development requires an improvement in the social structure and well-being.
• Measurement of economic development is based on deduction or elimination of economic problems such as poverty and unemployment.
• Finally Economic development is not possible without economic growth. Mostly Developing and underdeveloped economies need to focus on this perspective.

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