ECONOMIC GROWTH VS ECONOMIC DEVELOPMENT

DEFINITION

RELEVANCE TO

TERM

IMPACT

MEASUREMENT

ECONOMIC GROWTH

Narrow

Quantitative economic impact.

Quantitative measurement

Measures progress in
developed countries

Economic growth refers to the sustained increase in a country's production of goods and services, as measured by indicators like GDP, GNP, or real output per capita income.

Short—term certain periods of time

ECONOMIC DEVELOPMENT

Broad

.Brings both quantitative and qualitative changes to the economy

Quantitative and qualitative measurement

Measure progress and quality of life in developing countries.

Economic development involves increased production and improvements in income, savings, investment, technology, institutions, and living standards.

Long-term process, continuous process

CONCEPT

Improvement in human capital indexes, reduced inequality, and structural changes enhancing quality of life.

FACTORS

DEFINITION

CONCEPT

IMPACT

FACTORS

RELEVANCE TO

MEASUREMENT

TERM

  • Increase in consumption
  • Increase in investment
  • Increase in government spending
  • Increase in net exports

Increase in GDP, GNP or real GDP

Increase in real GDP, HDI, GDI, HPI, infant mortality rate, literacy rate and life expentancy rate.

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