Sunday, November 20, 2011

Difference between economic growth and economic development...?

Economic development is a normative concept meaning that the definition is variable however, the definition given by Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom from oppression aswell as a greater choice. The most accurate method of measuring development is the Human Development Index which takes into account the literacy rates & life expectancy which affect productivity and could lead to Economic Growth.

Economic Growth is an increase in a country's real level of national output which can be caused by an increase in the quality of resources by education etc, increase in the quantity of resources & improvements in technology. Economic Growth can be measured by an increase in a country's GDP. However this does not necessarily mean that development has occured.

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