Difference between Economic Development and Economic Growth

Economic Growth vs Economic Development

Difference between Economic Development and Economic Growth

Basis of differences

Economic Development

Economic Growth

1.  Definition

Economic development is the process of improvement in living standard of people.

 Economic growth is an increase in the real output of goods and services in the country.

2.  Concept

 Economic development is a broader concept. 

 Economic growth is a narrow concept.

3. Scope

 Economic development is concerned with the overall changes in the economy.

 Economic growth is concerned only with the increase in output.

4.  Effect

Economic development brings both qualitative and quantitative effect in the economy.

 Economic growth brings only quantitative effects in the economy.

5.  Measurement

 It is measured by qualitative factors like education, life expectancy, Infant mortality rate etc.

 It is measured by the rate of increment in the GDP.

6.  Relevance

 It is more relevant to the developing countries

 It is relevant to both the developed and developing countries.


Post a Comment

* Please Don't Spam Here. All the Comments are Reviewed by Admin.