Economic Growth & Development Presented by: Elham vali

Economic Growth Economic growth is a measure of increased productivity; productivity, in turn, is measured by the dollar value of goods and services produced. Nationally, economic growth is most often measured in terms of the gross national product. Because economic growth attempts to measure productivity by showing the total dollars paid for goods and services, GNP, or total productivity, typically rises due to inflation, so economic growth is adjusted for inflation.

Economic Development Economic development is the process of investing in an economy in anticipation of economic growth.Examples of economic development range, from building roads and bridges for commerce to supporting universities for research and innovation. Economic development is generally geared toward helping businesses start up, grow or relocate to a specific area.

In economics, the term "leading indicator" refers to a measurable financial factor, such as inflation, which tends to predict a future economic event, for example, a decrease in the money supply. Conversely, a trailing indicator is a quantified measure that indicates something has already happened. For example, job growth is a trailing indicator of economic expansion. These concepts are important in describing economic sequences, cause and effect. Economic growth generally follows economic development. For example, a third world country may be suffering economic recession (decreasing total incomes) while attempts at economic development are taking place. So, economic growth is often a trailing indicator of economic development. Why Economic Growth is Independent of Development

Why Economic Development Is Independent of Growth Businesses and economies have always been subject to business cycles. Economists do not fully understand why business cycles happen, but they are predictable. Products have a life cycle. Things come in and go out of vogue. Capital equipment, such as buildings and machinery, wear out. Technology and intellectual property become obsolete. An economy may be having an enormous surge in growth (income) while there is little or no investment in the renewal of the economy Difference Between Economic Growth and Development By John Willis, eHow Contributor, last updated May 18, 2014

1. Economic growth deals with quantitative changes. 2. Economic growth is an increase in what an economy can produce if it is using all its scarce resources. 3. Increase in a country's productive capacity, as measured by comparing gross national product (GNP) in a year with the GNP in the previous year.country'sproductive capacitygross national product (GNP) Economic Growth Definition :

4. Economic growth is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Of more importance is the growth of the ratio of GDP to population (GDP per capita), which is also called per capita income.market valueeconomy gross domestic productper capita 5. Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced.inflation-adjustedinflation 6. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment ".economicspotential outputfull employment

1. Economic development deals with qualitative changes in the economy, such as development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.human capitalcritical infrastructurecompetitivenessenvironmental sustainability social inclusionhealthsafetyliteracy 2. It is the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area. communitiesstandard of livingeconomic health 3. Economic development means growth alongside increasing in productive inclusions concerning all physical, human and social inclusions. Economic Development Definition :

is the increase in the market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. [1] Of more importance is the growth of the ratio of GDP to population (GDP per capita), which is also called per capita income. An increase in growth caused by more efficient use of inputs is referred to as intensive growth. GDP growth caused only by increases in inputs such as capital, population or territory is called extensive growth. [2]market valueeconomygross domestic product [1]per capita [2] Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced. Measurement of economic growth uses national income accounting. [3 ]inflation-adjustedinflation Measurement of economic growthnational income accounting [3 ] Economic growth :

In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment". As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how countries can advance their economies. The latter is the study of the economic aspects of the development process in low-income countrieseconomicspotential outputfull employmentdevelopment economics

Enconomic development: Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure. For example, GDP only measures the market economy, which tends to overstate growth during the change over from a farming economy with household production. An adjustment was made for food grown on and consumed on farms, but no correction was made for other household production. Also, there is no allowance in GDP calculations for depletion of natural resources. [4] [4]

Measuring economic growth The U.S. Commerce Department's Bureau of Economic Analysis (BEA) provides economic statistics, including GDP. The BEA website conatins links to various documents that explain the concepts and methodology of national income and products accounts and GDP as well as historical tables. [5]U.S. Commerce DepartmentBureau of Economic Analysis [5] Statistics on the Growth of the Global Gross Domestic Product (GDP) from 2003 to 2013, IMF, October 2012.Statistics on the Growth of the Global Gross Domestic Product (GDP) from 2003 to 2013

ECONOMIC GROWTH What is growth? This is reasonably unambiguous; it is the change in national income over time, usuallymeasured over one year. National income is the amount produced by a country in one year.

ECONOMIC DEVELOPMENT What is it? The exact meaning of “development” is unclear – there is no general agreement about what it is or what should go in. It tries to see “how well off” people are in ways that include more than just income. There is a feeling of wider change and improvement about it, as well as“better off”. It is not just “more of the same” which is what “growth” measures. © Copyright Kevin B. Bucknall 2013,