Growth is usually calculated in real terms i.e, inflation adjusted term to eliminate the distorting effect of infaltion on the prices of goods and produced.
The Economic Growth-rate of countries are commonly compared using the ratio of the GDP to population (Percapita income).
Economists refer to an increase in the Economic Growth caused by more efficient use of inputs (increased productivity of labour, of physical capital, of energy or of materials) as intensive growth. In contrast, GDP growth caused only by increase in the amount of inputs available for use (increased population, for example, or new territory) counts as extensive growth.
Economists distinguish between long-run Economic Growth and short-run variation in Economic Growth is termed as business cycle. Generally economists attribute the ups and downs in business cycle to fluctuations in aggregate demand. In contrast Economic Growth is concerned with the long-run trend in production due to structural causes such as technological growth and factor accumulation.
Increases in labour productivity (ratio of the value of output to labor input) have historically been the most important source of real per-capita economic growth. "In a fomouse estimate, MIT Professor Robert Solow concluded that technological progress has accounted for 80% of the long-run rise in U.S per-capita income, with increased investment in capital explaining only the remaining 20%.
In the Economic study of the public sector, Economic abd social development is the process by which the Economic well-being and quality of life of a nation, region, local community or an individual are improved according to the targeted goals and objectives.
The term has been used frequently in the 20th and 21st centuries, but the concept has existed in the west for far longer. "Modernization", "Westernization", and especially"Industrialization" are other terms often used while discussing Economic development policies focused on industrialization of infrastructure, but since the 1960s, it has increasingly focused on poverty reduction.
Whereas Economic development is a policy intervention aiming to improve the well-being of people, Economic Growth is a phenomenon of market productivity and increases in GDP, Economist Amartya Send describes Economic Growth as about "one aspect of the process of Economic development".
Economists primarily focus on the growth aspect and the economy at large, whereas researchers of community Economic development concerns themselves with socioeconomic development as well.
The precise definition of Economic development has been contested: While economists in the 20th century viewed development primarily in terms of Economic Growth, sociologists instead emphasized broader process of change and modernization. Development and urban studies scholar Karl Seidman summerises Economic development as "a process of creating and utilizing physical, human, financial, and social assets to generate improved and broadly shared Economic well-being and quality of life for a community or region". Daphne Greenwood and Richard Holt distinguish Economic development from Economic Growth on the basis the Economic development is a "broadly based and sustainable increase in the overall standard of living for individuals within a community" and measures of growth such as Percapita income do not necessarily correlate with improvements in quality of life. Economic development is a wider concept and has qualitative dimensions. Economic development implies Economic Growth plus progressive change in certain important variables which determines well-being of people, e.g, health, education, etc. The University of Lowa's center for interventional Finance and development states that: "Economic development" is a term that practitioners, Economists, Politicians, and others have used frequently in the 20th centry. The concept, however, has been in existence in the west for centuries. Modernization, Westernization and especially Industrialization are other terms people have used while discussing Economic development which has a direct relationship with the environment.
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Economics