Meaning of Economic Development and Growth | Economics Class 11

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Meaning of Economic Development and Growth
For: Management | Economics Class 11

Meaning of Economic Development
Economic development implies the progressive changes in socio-economic structure of a country. In other words, economic development is a process of changing poor people and nation to an advanced living standard, better health, better education, increase in per capita income, etc. economic development brings social, institutional and organizational change of a country. Economic development shows the changes with economic growth. Thus, economic development = Economic growth + changes.

Meaning of Economic Growth
Economic growth means the transformation of economy from the stage of under developed to the stage of development. This transformation is mainly reflected in a sustained and steady raise in national income and P.C.I. economic growth is related to a quantitative change only. Thus, economic growth refers to an increase in the aggregate level of national income, output and employment over a long period of time.

Difference Between Economic Development and Economic Growth
Economic growth and economic development is used by different economists in different ways. The main differences between these two terms are as follows:

Economic developmentEconomic growth
1. It is concerned with developing countries.1. It is concerned with developed countries.
2. It refers to the change in quantitative as well as qualitative aspects like political, social, historical, cultural etc.2. It refers to a quantitative change in economic variables like P.C.I, output etc.
3. It is multi-dimensional process so; it is a more complex phenomenon.3. It is just an increase in economic variables, so it is a simple phenomenon.
4. It is a discontinuous and spontaneous concept.4. It is a continuous concept.
5. It is the cause or process.5. It is an economic development’s effect or result.
6. It needs economic growth.6. There may be growth without economic development.
7. the indicators of economic development are PQLI(Physical Quality of Life Index), HDI, PCI etc.7. The indicators of economic growth are N.I, output, employment, P.C.I etc.

Posted By : Hari Prasad Chaudhary | Comment RSS | Category : Class XI, HSEB Notes
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