AMITY SCHOOL OF ECONOMICS

Growth and
development
Concept
 Meaning AMITY SCHOOL OF ECONOMICS

• Growth is concerned with increases in the

economy's output.
• Development is concerned with structural
changes in the economy.
• Development relates to growth of human capital
indexes, a decrease in inequality figures, and
structural changes that improve the general
population's quality of life. Growth relates to a
gradual increase in one of the components of
Gross Domestic Product: consumption,
government spending, investment, net exports
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 Implication AMITY SCHOOL OF ECONOMICS

• Development implies changes in

income, saving and investment along
with progressive changes in socio-
economic structure of
country(institutional and technological
changes).
• Growth refers to an increase in the real
output of goods and services in the
country like increase the income in
savings, in investment etc.
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 Measurement AMITY SCHOOL OF ECONOMICS
• Qualitative method used for
measurement of Development - HDI
(Human Development Index), gender-
related index (GDI), Human poverty
index (HPI), infant mortality, literacy rate
etc.
• Quantitative indicators used to measure
growth- Increase in real GDP.

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 Impact AMITY SCHOOL OF ECONOMICS

• Development brings qualitative and

quantitative changes in the economy.
• Growth: Brings quantitative changes in
the economy

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 Relevance AMITY SCHOOL OF ECONOMICS

• Economic development is more relevant

to measure progress and quality of life in
developing nations.
• Economic growth is a more relevant
metric for progress in developed
countries. But it's widely used in all
countries because growth is a necessary
condition for development.
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VCP AMITY SCHOOL OF ECONOMICS

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 QUIZ AMITY SCHOOL OF ECONOMICS

• How growth and development are

related to each other?