Development Economics and Growth Economics Essay Example
Development Economics and Growth Economics Essay Example

Development Economics and Growth Economics Essay Example

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  • Pages: 2 (307 words)
  • Published: May 8, 2022
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Development Economics and Growth Economics

Economic Growth is a shallower concept than development one. This represents country's increase in real gross national product. This is can be caused by an increase in the resources quality and quantity and also technology improvements. We can measure this country's GDP increment. Economic development implies an increase in standards of living, self-esteem needs improvement and freedom for greater choice. This is measured in Human Development Index which puts into consideration the rates literacy and life expectancy which has an effect on productivity and leads to Economic Growth.
According to Valickova et al (2015), economic development implies institutional as well as technological changes. This is an upward change of the social system with regards to income, savings and investment accompanied by progressive changes in the countries socioeconomic structure. I

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n the other hand, economic growth can be described as the actual output per capita income for an economy in a given nation.
While Development has to do with the growth of human capital indexes, an inequality figures reduction, and changes of structures which improves quality of life for the general population, Growth has to do with gradual increase in one of the components of Gross Domestic Product which include consumption, government expenditure, investment and net exports. Economic development is more relevant to measure progress and quality of life in developing nations whereas economic growth is a more relevant metric for progress in developed countries. But it's widely used in all countries because growth is a necessary condition for development (Valickova et al, 2015). The two aspects o economy are therefore said to be related and but not similar. They however must go hand in hand for successful economy

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of any nation.

Reference
Valickova, P., Havranek, T., & Horvath, R. (2015). Financial Development and Economic Growth: A Meta?Analysis. Journal of Economic Surveys,29(3), 506-526.

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