Example of economic growth and economic development ?
Answers
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- Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. ... Higher real GDP enables more to be spent on health care and education.
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Explanation:
Economic growth means an increase in real national income / national output.
Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care.
Ceteris paribus, we would expect economic growth to enable more economic development. Higher real GDP enables more to be spent on health care and education.
However, the link is not guaranteed. The proceeds of economic growth could be wasted or retained by a small wealthy elite.
Economic growth
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Economic growth in the UK
Economic growth measures an increase in Real GDP (real output). GDP is a measure of the national income / national output and national expenditure. It basically measures the total volume of goods and services produced in an economy.
Economic development
Development looks at a wider range of statistics than just GDP per capita. Development is concerned with how people are actually affected. It looks at their actual living standards and the freedom they have to enjoy a good standard of living.
Measures of economic development will look at:
Real income per head – GDP per capita
Levels of literacy and education standards
Levels of healthcare e.g. number of doctors per 1000 population
Quality and availability of housing
Levels of environmental standards
Life expectancy.