Economic
Growth:
Growth:
It is the quantitative measure which considers the rise in
the output produced in an economy or nation in a particular period in its
monetary value. The key parameters of economic growth in any economy are its
Gross Domestic Product (GDP) and gross national product which helps in
measuring the actual size of an economy.
the output produced in an economy or nation in a particular period in its
monetary value. The key parameters of economic growth in any economy are its
Gross Domestic Product (GDP) and gross national product which helps in
measuring the actual size of an economy.
example, we say GDP of India is 2.8 trillion USD and ranked
6th in globe whereas GDP of the United States of America is 19.3 trillion USD
and ranked one.It shows how much the production of goods and services has
increased compared from last year in a quantitative manner. It has many
parameters to measure and few of them are human Resources. They are Natural
Resource, Advancement in technology, Capital formation, Political and social
economic factors.
6th in globe whereas GDP of the United States of America is 19.3 trillion USD
and ranked one.It shows how much the production of goods and services has
increased compared from last year in a quantitative manner. It has many
parameters to measure and few of them are human Resources. They are Natural
Resource, Advancement in technology, Capital formation, Political and social
economic factors.
Economic Development:
Economic development projects a broader picture of an economy
which takes into account an increase in production level or output of an
economy along with an improvement in the living standard of its citizens. It
focuses more on socioeconomic factors rather than the just quantitative
increase in production. Economic development is a qualitative measure which
measures improvement in technology, labour reforms, rising living standards,
broader institutional changes in an economy.
which takes into account an increase in production level or output of an
economy along with an improvement in the living standard of its citizens. It
focuses more on socioeconomic factors rather than the just quantitative
increase in production. Economic development is a qualitative measure which
measures improvement in technology, labour reforms, rising living standards,
broader institutional changes in an economy.
Human development Index (HDI) is apt tool to measure the real
development in an economy.
development in an economy.
|
Comparison between Economic
Growth and Economic Development |
Economic Growth
|
Economic Development
|
|
Definition
/ Meaning |
It is
the positive quantitative change in the output of an economy in a particular time period |
It
considers the rise in the output in an economy along with the advancement of HDI index which considers a rise in living standards, advancement in technology and overall happiness index of a nation. |
|
Concept
|
Economic growth is the
“Narrower” concept |
Economic development
is the “Broader” concept |
|
Nature
of Approach |
Quantitative
in nature |
Qualitative
in nature |
|
Scope
|
Rise in parameters
like GDP, GNP, FDI,FII etc. |
Rise in life
expectancy rate, infant, improvement in literacy rate, infant mortality rate and poverty rate etc. |
|
Term
/ Tenure |
Short
term in nature |
Long-term
in nature |
|
Applicability
|
Developed nation
|
Developing economies
|
|
Measurement
Techniques |
Increase
in national income |
Increase
in real national income i.e. per capita income |
|
Frequency
of Occurrence |
In a certain period of
time |
Continuous process
|
|
Government
Aid |
It is
an automatic process so may not require government support/aid or intervention |
Highly
dependent on government intervention as it includes widespread policies changes so without government intervention it is not possible |
|
Wealth
Distribution |
Economic growth does
not emphasize on the fair and equal distribution of wealth/income among all its people. |
It focuses on a
balanced and equitable distribution of wealth among all individual and trie |
