Differences Between Economic Growth And Economic Development
What is the difference between economic growth and economic development?
http://en.wikipedia.org/wiki/Economic_development#Economic_growth_versus_economic_development
“economic growth” usually refers to specific GDP numbers such as total GDP. When the price of oil goes up, Saudi Arabia gets a lot more money for the same amount of oil and so sees major “economic growth”
“economic development” tries to measure how the structure of the economy has improved. For example:
- improvements in farming techniques or agricultural organization
- better infrastructure that lets goods move more easily
- a more educated labor force that is significantly more productive
- machines and business organizations that improve productivity
In the absence of factors such as major shifts in commodity prices and increased population, improvements in the structure of the economy are reflected in greater economic growth, so you often see “economic development” measured in terms of GDP.
But there are other measures of development that are not specific to GDP. The number of different products a country exports and imports is one good one. The percentages of the labor force in agriculture (lower is more developed) and services (higher is more developed) is another.
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