MBA Tutorials: Economic Growth and Economic Development

Economic Growth

-It is a Narrower Concept.
-It refers to quantitative changes in the economy.
-This term generally signifies developed countries
-It is an increase in a country's quantitative national output.
-It can be measured by an increase in a country's GDP(Gross National Product).


Economic Development

-It is a Broader Concept.
-It refers to both qualitative and quantitative changes in the economy.
-This term generally signifies developing or under-developed countries.
-It is an increase in living standards, improvements in self needs/demands, having more choices/options etc.
-It's measurement depends upon various factors like Life Expectancy Index, Education Index, Adult Literacy Index, Human Development Index etc.


Economic Growth is the necessary but not sufficient for Economic Development.