Differences between economic growth and economic development

Economic growth is an increase in the national income or per capita output over a period. It is a sign of quantitative growth in the country. On the other hand, economic development is a process where the real per capita income of a country increases over a period with a decrease in poverty ratio, unemployment and income inequality.


Differences between economic growth and economic development


The main differences between economic growth and economic development are

Economic GrowthEconomic Development
Economic growth has a single dimensionEconomic development is multi-dimensional.
Economic growth reflects only quantitative changesEconomic development shows both quantitative and qualitative changes.
Economic growth shows the change in the outputEconomic development shows changes in output along with technology and institutional arrangements.
Economic growth is spontaneousEconomic development is either regulated or controlled.
Economic growth is possible without the developmentEconomic development is not possible without growth

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