• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Distinction Between Economic Growth and Economic Development

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Economic growthis refers to the increase in real GDP per capita in one year. ...

    By adding one of the most valued resources to efficient industries in Australia the Australian government can hope that the expected shift of a large percentage of labour would result in the productivity levels of the industries rising.

  2. The costs and benefits of economic growth.

    Higher investment adds to aggregate demand in the short term but also provides a platform for a higher underlying rate of growth in the long run because of the potential for increasing returns to scale, a faster pace of

  1. Split Votes: A Nation Divided on the Marijuana/Drug Legalization Debate

    of Justice instead discredits the neoclassical argument for legalization. They present unsubstantiated facts and figures that show that the amount they spend to fight drugs is a fraction of the damages to society drugs are responsible for. They also claim legalization would only make the problem worse, while giving little in return.

  2. GDP and Growth

    * In 1997, Gordon Brown handed over day-to-day control of interest rates to the Bank of England which they are responsible for setting its base rate to keep inflation in the consumer price index very near to 2%. The policy is known as the monetary policy.

  1. Scarcity and Unlimited Wants.

    * Some products have only a limited demand, eg horse shows. * Some products require little capital, eg window cleaning. * Small firms receive grants and subsidies from the government. Market Structure Market structure refers to the number of firms in an industry.

  2. AN ANALYSIS OF MALAYSIAN ECONOMIC DEVELOPMENT FROM 1993 TO 2002

    Its manufacturing sector's contribution to the GDP grew from 26% to 30% between 1993 and 2002. This sector is today the key driver of growth in the Malaysian economy. Besides manufacturing, other principal sectors would be agriculture, mining and construction.

  1. Japan's prolonged economic slump

    In the 1970s, the average rate was 5% at which time the Japanese economy was considered as a matured economy and followed by 4% during the 1980s (Bigsten, 2004, p.3). Then in 1991, the speculative bubble in Japanese land and stock prices burst, and the Japanese economy began to slide into recession.

  2. The Desirability of Economic Growth.

    ( It could even be argued that those economies which have high levels of real GDP command more political influence and status on the world stage. They have therefore more powerful voices on the international stage in organisations such as the United Nations, G8, or the World Trade Organisation. )

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work