Basic concept | Differences between Economic growth and development.

How does economic growth causes economic development?

Economic growth and development.

Economic growth definition

What is economic growth? Economic growth refers to rise in national income, per capita income & production. Economic growth is said to occur if the production of goods & services increase by any means. We can explain eg : another way economic growth is a increase in a real GDP of a nation over a particular period of time .

What are the measures of economic growth of country? And how does economic growth causes development?

1. It mainly depends on economic factors (increase in GDP, national income, per capita income & production).

2. It's quantitative concept.

3. Measured by annual increase in per capita income after a certain period of time.

4. Economic growth is one dimensional on uni dimensional concept. Because it only focus on production development.

5. Just means of economic development.

6. Economic growth can be achieved without economic development.

7. It's major concern of development of country.

What is relationships  between economic  growth and unemployment? And how does economic growth increases employment?

As far as the  growth in GDP (gross domestic product) exceeds labor productive growth, rate of employment  will raise. If economic growth grows more faster then labour force growth then there will be a fall in rate of unemployment. 

Economic development

What is  economic development ?Economic development means in additional to the rise in per capita income or production. When the fundamental development also goes on like the stricture changes. That includes improvement in the living standards of the people (schools, hospitals & many other infrastructure changes in the country).

Economic development consist of rising of industry, growing urbanization, falling of population growth rate & changing age structure, Chang in living pattern. 

Role of economic development administration

1. It mainly depends on eco factor as well as non eco factors & social culture factors.

2. It's a qualitative concept.

3. It can't be measured.

4. It's multidimensional, because it focuses on various aspects & development of the society.

5. It is ultimate object of the economy. And is end in itself.

6. Economic development is seldom to achieve without economic growth.

7. Major concern of under-development & development.

Organisation for economic co operation and development

OECD is a worldwide association that attempts to construct better approaches for better lives. The fundamental motivation behind the OECD is to improve the economy and advance world exchange. It gives an outlet of the administrations of various nations to coorperate to discover answers for regular issues in country eg: us economic growth, india economic growth, china economic growth etc.

US economic growth

If we compare the us economic growth  rate in 2019 it was 2.16% where as in year 2020 corona was also one of the many reasons that GDP was -4.27%.

India economic growth

India economic growth GDP has been decreased even before the pandemic struck. From a development pace  it was 8.3% in the year 2017, the GDP extension had plunged to 6.8 %  in the accomplishing 2 years 4 % in 2019-20.

China economic growth 

In the year 2018 & 2019 GDP rate was 6.7% & 6.0% in china  as compared to 2020 which was 2.3%.

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R P Vani

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