Economic Growth & Development

Presented by:

Elham vali

Economic GrowthEconomic growth is a measure of increased

productivity; productivity, in turn, is measured by

the dollar value of goods and services produced.

Nationally, economic growth is most often measured

in terms of the gross national product. Because

economic growth attempts to measure productivity

by showing the total dollars paid for goods and

services, GNP, or total productivity, typically rises

due to inflation, so economic growth is adjusted for

inflation.

Economic Development

Economic development is the process of investing in an economy

in anticipation of economic growth.Examples of economic

development range, from building roads and bridges for commerce

to supporting universities for research and innovation. Economic

development is generally geared toward helping businesses start

up, grow or relocate to a specific area.

 

1 .Economic growth deals with quantitative changes.

 

2 .Economic growth is an increase in what an economy can produce if it is using all its scarce resources .

 

3 .Increase in a country's productive capacity, as measured by comparing gross national product (GNP) in a year with the GNP in the previous year.

 

 

Economic Growth Definition :

4 .Economic growth is the increase in the market value of the goods

and services produced by an economy over time. It is

conventionally measured as the percent rate of increase in real

gross domestic product, or real GDP. Of more importance is the

growth of the ratio of GDP to population (GDP per capita), which is

also called per capita income.

 

5 .Growth is usually calculated in real terms – i.e., inflation-adjusted

terms – to eliminate the distorting effect of inflation on the price of

goods produced.

 

6 .In economics, "economic growth" or "economic growth theory"

typically refers to growth of potential output, i.e., production at"

full employment."

1 .Economic development deals with qualitative changes in the economy,

such as development of human capital, critical infrastructure, regional

competitiveness, environmental sustainability, social inclusion, health,

safety, literacy, and other initiatives.

 

2 .It is the sustained, concerted actions of policy makers and communities

that promote the standard of living and economic health of a specific area.

3 .Economic development means growth alongside increasing in

productive inclusions concerning all physical, human and social

inclusions.

Economic Development Definition :

is the increase in the market value of the goods and services produced by

an economy over time. It is conventionally measured as the percent rate

of increase in real gross domestic product, or real GDP.[1] Of more

importance is the growth of the ratio of GDP to population (GDP per capita

), which is also called per capita income. An increase in growth caused by

more efficient use of inputs is referred to as intensive growth. GDP growth

caused only by increases in inputs such as capital, population or territory

is called extensive growth.[2]

Growth is usually calculated in real terms – i.e., inflation-adjusted terms –

to eliminate the distorting effect of inflation on the price of goods

produced. Measurement of economic growth uses

national income accounting.[3]

Economic growth :

In economics, "economic growth" or "economic growth theory"

typically refers to growth of potential output, i.e., production at "

full employment". As an area of study, economic growth is

generally distinguished from development economics. The former

is primarily the study of how countries can advance their

economies. The latter is the study of the economic aspects of the

development process in low-income countries

Enconomic development:

Since economic growth is measured as the annual percent change

of gross domestic product (GDP), it has all the advantages and

drawbacks of that measure. For example, GDP only measures the

market economy, which tends to overstate growth during the

change over from a farming economy with household production.

An adjustment was made for food grown on and consumed on

farms, but no correction was made for other household production.

Also, there is no allowance in GDP calculations for depletion of

natural resources.[4]

Measuring economic growth

The U.S. Commerce Department's Bureau of Economic Analysis (BEA) provides economic statistics, including GDP. The BEA website conatins links to various documents that explain the concepts and methodology of national income and products accounts and GDP as well as historical tables.[5]

 •Statistics on the Growth of the Global Gross Domestic Product (GDP) from 2003 to 2013, IMF, October 2012.

ECONOMIC GROWTHWhat is growth?

This is reasonably unambiguous; it is the change in national income

over time, usuallymeasured over one year. National income is the

amount produced by a country in one year.

ECONOMIC DEVELOPMENT

What is it?

The exact meaning of “development” is unclear – there is no general

agreement about what it is or what should go in. It tries to see “how well off”

people are in ways that include more than just income. There is a feeling of

wider change and improvement about it, as well as“better off”. It is not just

“more of the same” which is what “growth” measures.

© Copyright Kevin B. Bucknall 2013,