Comparison between Economic Growth and Economic Development
Definition / Meaning : It is the positive quantitative change in the output of an economy in a particular time period
Concept : Economic growth is the “Narrower” concept
Nature of Approach : Quantitative in nature
Scope : Rise in parameters like GDP, GNP, FDI,FII etc.
Term / Tenure : Short term in nature
Applicability : Developed nation
Measurement Techniques : Increase in national income
Frequency of Occurrence : In a certain period of time
Government Aid : It is an automatic process so may not require government support/aid or intervention
Definition / Meaning : It considers the rise in the output in an economy along with the advancement of HDI index which considers a rise in living standards, advancement in technology and overall happiness index of a nation.
Concept : Economic development is the “Broader” concept
Nature of Approach : Qualitative in nature
Scope : Rise in life expectancy rate, infant, improvement in literacy rate, infant mortality rate and poverty rate etc.
Term / Tenure : Long-term in nature
Applicability : Developing economies
Measurement Techniques : Increase in real national income i.e. per capita income
Frequency of Occurrence : Continuous process
Government Aid : Highly dependent on government intervention as it includes widespread policies changes so without government intervention it is not possible