Differences between Economic Growth and Economic Development

Comparison between Economic Growth and Economic Development

Economic Growth

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

Economic Development

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