Question

How does economic growth hinder economic development?

Answer 1

Improvements and increased investment in physical capital - such as roadways, machinery and factories - will reduce the cost and increase the efficiency of economic output. Factories and equipment that are modern and well-maintained are more productive than physical labor. Higher productivity leads to increased output.

Answer 2

One of the biggest impacts of long-term growth of a country is that it has a positive impact on national income and the level of employment, which increases the standard of living. ... Higher economic growth also leads to extra tax income for government spending, which the government can use to develop the economy.