Distinction between Economic Growth and Economic Development

From Wikiversity - Reading time: 1 min

A distinction should be made between Economic Growth and Economic Development.

Economic Development is made possible by innovation and a series of innovations. Development involves fundamental changes within the society where as growth is the improving of a societies efficiency. Growth ideally involves being free from economic instabilities.

Growth = More output Development = More output + changes

Examples

India

India is still developing because it is still undergoing drastic societal changes as well as growing economically.

U.S.A.

The United States is growing economically because it is no longer undergoing societal changes but is rather streamlining the efficiency of its economy.

Libya

Libya is growing and not developing because the increase in oil revenues is not affecting any changes.


Licensed under CC BY-SA 3.0 | Source: https://en.wikiversity.org/wiki/Distinction_between_Economic_Growth_and_Economic_Development
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