What is the difference between economic development and economic growth?
Generally, both economic development and economic growth provide some clear benefits to the region. However, there are some differences between these events. For example, advances in industry, including technologies and production, could certainly build a region with other countries. However, higher productivity could occur even if other industries suffer from high unemployment or inflation that prevents sufficient consumer expenditures. As a result, the development in the economy, although often advantageous, may not always lead to an expansion for the economy.
If you want to recognize the difference between economic development and economic growth, it may be useful to identify both events. Economic growth is often measured through an indicator known as a gross domestic product (GDP.) Data are usually reported quarterly in the country. This value reflects the degree of production of goods and services in this region.
Economics use GDP information to assess the health of the financial status of the region. Increasing the indicator reveals a certain STUEconomic expansion, while the decline suggests that some slowdown is underway. If there is no change in GDP, the production of goods and services has remained stagnant for some time.
As economic development occurs, the inhabitants of the region should be able to recognize the improvement of their standard of living. Such progress could be reflected in the construction of other roads or upgrades to the existing infrastructure. Most of the investments that control economic development come from the federal government. As a result, there may be changes in public policy that stimulates an activity that leads to higher employment, greater income and more favorable conditions in areas from health care to transport.
Government can be provided at a national or local level. Programs may include extension of financing opportunities so that new businesses have a chance to flourish. Some government programs and politicians may sometimes pCity for further economic development, which in turn can lead to greater economic growth.
Although there are differences between economic development and economic growth, both events can support each other. For example, investments in local infrastructure can improve community trade conditions. Roads that are more accessible and increasing the value of real estate that can occur from new development could increase the number of small businesses in the area. This can stimulate economic growth, as favorable conditions can attract larger trade to the region and increase the profits of local trades. The greater presence of small businesses can benefit the development of the city, because shop owners often reinvest into the community by supporting local events.