How does economic growth and development differ?
1 Answer
Oct 30, 2015
Economic growth is simply the growth of GDP, while economic development is a process of structural change of an economic system.
Explanation:
Although they are related, growth is mainly a quantitative change, while development is a qualitative change of the economic structure. During economic development firstly agriculture shrinks while manufacturing increases, then also manufacturing shrinks while services increase; there is technical progress and modernization of production processes; also consumption patterns change. Another important aspect of development is institutional change.
