Ecnomic Growth

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

To answer the question, “What is economic development?”Dr. Grinols professor of economics at Baylor University and author of Gambling in America: cost and benefits, 2004 said, “When individuals undertake productive activity, they engage in the creation of goods and service that provide greater welfare or satisfaction than the inputs used.” (Grinols 2004). Economic development is the creation of greater value by society from its available resources which means greater income and wealth, which lead to greater utility for members of society (Grinols 2004). Dr. Grinols

Economic growth is an increase in the capacity of an economy to produce goods and services from one period of time to another. In simple terms, it refers to an increase in aggregate productivity.

Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.

The most important economic resource is capital. Capital is what really gets the business up and running. Without capital, no money is earned and the business fails. Capital allows for more locations nationwide. Capital is necessary in any business.

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

Economic growth is a common term used by economists to describe in increase in production in the long run. According to Robinson (1972) economic growth is defined as increases in aggregate product, either total or per capita, without reference to changes in the structure of the economy or in the social and cultural value systems. The basic tool of measuring the economic growth includes the real GDP. It provides some quantitative measures in terms of the production volume.

Economic growth refers to the output of goods and services produced per capita in a nation over time. It is measured as the percent rate of increase in Real Gross Domestic Product(GDP) which is the value of total productions produced by an economy in

Economic growth is best defined as a long-term expansion of the productive potential of the economy. Sustained economic growth should lead higher real living standards and rising employment. Short term growth is measured by the annual % change in real GDP.

First of all, economic growth is one of the macroeconomic objectives that the government wants to achieve as a primary goal and it happens when there is a rise in the enlarged product of population and per capita consumption. According to Hoover (2011), economic growth is the total material output of good values and service values in the market, measured by Gross Domestic Product (GDP) in a specific period of time. The growth of GDP is measured by excluding intermediate consumptions (production and resale), purely financial transactions and second-hand sales, which prevents double counting. To obtain an accurate value of economic growth, GDP needs to include the total output of expenditures and incomes.

“Economic growth is the raise in price of the goods and services created by an economy.” (GDP Growth Definition, n.d., para1). It is measured by the percent rate of increase and calculated in real terms, for example: inflation- adjusted terms to net in the result of inflation on the price of the goods and services produced.

In general, the main cause for economic growth is the increase in mass demand. As the population demand for more goods and services, the more of it will be produced. Therefore, the demands will raise the level of real GDP (gross domestic product).

Economic growth positively produces more jobs and a strong level of economic growth can help individuals who are willing to find employment. Countries

This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of

Economic processes are those involving the production and distribution of goods and services. However, they do not alone determine this production and distribution. There is an interrelationship of economic, cultural, environmental, and political processes that all help to shape each other. Nothing that we do can be defined as a single process, for it is the interaction itself that helps to produce the final results that we observe. To understand this more fully the following basic definitions may be of use: