Economic Growth and Economic development are two concepts in Economic, which may sound similar but have difference in their meaning. Economic Development is all about the Qualitative works done and where as the Economic Growth the Quantitative progress.
In this article 99employee have got you some basic definition along with suitable relations which helps you understand the difference between Economic Growth and Economic Development. To grow the economy, these two components are very important and raising them in an equal manner always brings a higher growth rate.
Define Economic Growth
Economics may clearly referred to as the increase in monetary value of goods and services during a time period in Economy. It is a clear quantitative measure which reflects the potential increase in business transactions which are taking place in Economy.
In general works, Economic growth measured as the aggregate market value of goods and services which produced by using the concept such as GNP and GDP.
Also read: Sectors of Economy
Define Economic Development
Economic Development is a measure of overall health, well being, and education level in population and other important points in a nation. It also adds the points where production volume of goods increased due to advancement of technology.
The qualitative improvement of individual life in a country calculated by the Human Development Index. The development of a country does include the increase in job opportunities, technology, and improved living. Per capita income, life quality, DGP and other measures.
Let us go with some heading that does define the difference between the two major concepts of Economy.
Also read: What is Economy
Difference between Economic Growth and Economic Development
Definition
Economic growth refers to an increase in the monetary growth of a nation for a defined time period. Economic Development does refer to development in the quality of life which includes Economic growth of individuals in a nation.
Span of Concept
Growth is a narrow concept whereas Development is a broader concept.
Scope
Economic growth is a uni-dimensional approach which deals with the Economic growth of a country and the Economic development is multidimensional which stresses on income as well as growth of life in the country.
Time period
Economic Growth is a short term process. Economic development is a long term process.
Measurement
Growth measured in Quantitative manner, and Development measured in both quantitative and qualitative manner.
Applicable
Economic Growth applicable to only developed economic nations, but development applied only to developing Economic nations.
Government Support
Economic Growth, an automotive process doesn’t require any separate support from government. But the Economic development does require legal schemes along with other developing concepts to brought by Government.
Economic Growth and Development Example
The best examples are GDP and GNP, whereas Economic development may seen in HDI, per capita income, and industrial development. Here we get the best example which can clearly describe the difference between the Growth and Development.
Human beings defined to increase their weight, height which is a physical activity in their growing age. When we talk about human development, there comes other concept such as behavior, maturity level, attitudes, habits, feelings, education, intelligence and more which defines human development.
In similar manner, the Economic growth is only up to increase in size of production of goods for certain period. On the other hand, Development includes all other activities of a nation that concentrate on individual life growth along with other aspects of nations like infrastructure, education standard and more.
Does anyone have a concept of Economic growth or development for a nation?
The concept of Economy does depend on growth and its development parallel. Having a developed nation will have all these criteria obtained and index to measure their Economic growth and as well economic development.
Is Economic growth and Development calculated based on time?
Economic growth considered with the duration of time for a particular period. On the other hand, Economic development is a continuous process that does changes to meet the modern technology invention and their criteria.