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Distinction Between Economic Growth and Economic Development

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Introduction

Distinction Between Economic Growth and Economic Development Economic Growth is when an increased output of a nation of goods and services available to satisfy the material wants of the people, but not the welfare of a nation (health cover, housing, schooling). Economic growth is associated with the well being of a nation, through increasing incomes. However, the welfare of a nation is not included in economic growth. ...read more.

Middle

In addition to that, the industries that are not growing at such a rapid rate relative to others will have a chance of being neglected. Economic growth is usually associated with negative externalities, eg. Environmental damage, an inequality in the distribution of income. Economic Development is a more comprehensive measure than economic growth. Economic development is an increase in the real GDP per capita as well as the welfare of the nation (improving material and non-material standards of living). ...read more.

Conclusion

An increased income is spread evenly over the population; this will allow more purchasing power, increased revenue for the government, and a higher standard of living. When economic growth occurs in LDCs, this may inequality in the distribution of income because some industries may grow more rapidly than others, therefore the people associated with these industries incomes will also rise more quickly than people of other industries. But economic development is aimed at the whole nation's income rising. Economic development is the ultimate goal. ...read more.

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