Economic Growth Vs Economic Development
1. State of Development
Generally speaking, economic development refers to the problems of underdeveloped countries and economic growth to those of developed countries.
2. Nature and Level of Change
Development is a discontinuous and spontaneous change while growth is a gradual and steady change in the long run.
3. Scope of Change
Growth simply means more output. But development refers to efficiency in production i.e. output per unit of input. It also implies changes in composition of output and in allocation of resources, reduction of poverty, inequality and unemployment.
4. Extent of change
Economic development (wider concept than economic growth) is taken to mean growth plus structural change.
i. Deals with the problems of Developed countries
ii. Change is gradual and steady
iii. Means more output
iv. Concerns Quantitative aspects i.e. increase in per capita income
i. Deals with the problems of UDCs
ii. Change is discontinuous and spontaneous
iii. Means not only more output but also its composition
iv. Quantitative as well as Qualitative
v. Wider concept Development = Growth + Change
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