Economics · Ch 1 — Economic Growth and Development
Economic Growth and Economic Development – Points of Difference
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Economic Growth and Economic Development – Points of Difference
Although the two ideas are related, the Andhra Pradesh Board of Intermediate Education's Economics course requires students to distinguish them clearly. The table below sets out the main points of difference.
| Basis | Economic Growth | Economic Development |
|---|---|---|
| Meaning | A rise in the physical volume of output/income | A wider process of improvement in overall living standards |
| Nature | Purely quantitative | Both quantitative and qualitative |
| Measurement | Rate of growth of GDP/GNP, per capita income | Composite indices — HDI, PQLI, and similar multi-dimensional measures |
| Scope | Narrower — concerned only with output | Wider — covers income, health, education, employment, environment, and institutions |
| Distribution of benefits | Not necessarily considered; can be accompanied by rising inequality | A central concern; judged partly by how widely benefits are shared |
| Structural change | May or may not accompany growth | Necessarily involves structural transformation (e.g., agriculture to industry/services) |
| Reversibility | Can fluctuate up and down with business cycles | A longer, more sustained, cumulative process |