Introduction
A country has many resources and there are many people whose needs are to be completed. This factor is a concern for economic development and economic growth. Let’s see what they are.
Economic Growth
Economic growth refers to the quantitative increase in the economy. This means that if a country has an increase in any quantitative or anything that can be recorded in terms of numbers and scaling, it is referred to as economic development.
Economic Development
Economic development refers to the increase in qualitative terms. It not only deals with economic growth but also the qualitative aspect of the economy. Economic development is a broader concept since it includes economic growth as an aspect in it.
What is the Difference between Economic Growth and Economic Development?
When we speak about economic growth we refer to it as a narrow concept, because it only has the numerical aspect related to it. Whereas economic development is a broader and vast concept because it not only deals with the numerical concept but also the qualitative ones. It does not only deal with the specific amounts of certain things but also the quality of the production.
Economic growth is a unidirectional concept. It means that the concept is concerned with only one direction of the aspect whereas economic growth is multidimensional. It means that it does not consider just one factor. It has several branches and interests which need to be completed for economic development to be considered done.
Apart from this, economic growth is an automatic action. It means that it happens on its own. It does not need the involvement of economic development to increase. But for economic development to increase according to quality, economic growth is compulsory to occur. This happens because economic growth is a small yet significant role that it plays in economic development.
When anything is increased in production, it comes under economic development, but when the focus is highlighted on certain quantitative aspects like the standard of living, this is referred to as economic development.
FAQs on Difference between Economic Growth and Economic Development
1. What is Economic Growth?
Economic growth is the measure of a country's economic improvement in the production of goods in a period (represented in quantitative terms).
2. What is Economic Development?
Economic development refers to the overall development of a country and its quality of living. It can be both quantitative and qualitative and is a continuous process.
3. What is the difference between Growth and Development?
While growth is a quantitative approach, development can be both quantitative and qualitative. Economic growth is determined for a specific period and development is a continuous process.
4. What are the tips to understand economic growth and development?
The tips to understand economic growth and economic development easily without any doubts and confusion are listed here.
Make tables for the economic development and economic growth differences. Most of the chapter deals with the dissimilarities between both economical concepts. In this way, the concepts of the economic topics can be grasped easily.
Notice the characteristics that are different in economic growth and economic development. These characteristics are the only things that are different, so memorizing them will help you know what the actual differences between the two concepts are.
5. How do I make notes about Economic growth and economic development?
Vedantu has downloadable notes on the aspect of economic growth and economic development which makes studying easier.
Make use of highlighters for noting the important points. This helps for examinations before which you can revise the concepts to keep the information fresh.
Organize your content according to huge to small. This helps in preparing mentally for the content you will learn.
Make sure you use flashcards for the retention of the information.
Make sure to make tests and quizzes so that you can self-analyze how much you know and how much you should learn.
6. What are the factors of economic growth?
Economic growth is simply the numerical factor of the economy in a country. The rate of the money spent and gained which contributed to the increase of the economic growth can be found out from the yearly national output known as the gross domestic product (GDP). This is also known as the gross national income (GNI). Economic growth shows only one outer aspect of the country and that is the income of the monetary funds. Economic development does not refer to the actual welfare of the country.
7. What are the factors of economic development?
Economic development is a vast concept dealing with an array of different concepts. Economic development is multidirectional, which means it considers all the aspects of the country. It looks beyond the concept of the monetary factors that are quantitative and deals with the qualitative characteristics of the nation, including the standard health scores, standard education, standard comfort. It is known to implement health indicators, education indicators, and social indicators. Economic development is not superficial and does not only deal with the current generation but also makes plans and prepares to cater to the future generations.
8. Should a country have economic development or economic growth?
Our country is supposed to increase in terms of economic development because we need to sustain the development. This means that the country should not only increase in the monetary aspects but also in the quality of living. And if a country has economic development, it automatically also has economic growth because economic growth is a part of economic development. This is also absolutely necessary for the country because it is not limited to only one generation but also concerns many generations in the future to come. Hence, a country should have economic development rather than only economic growth.