ECON 4130 Lecture 1: ECON 4130 Lecture Notes
5 Oct 2018
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Topic 1 - economic development--an overview1/16/2015 6:37:00 pm. Economic growth vs. economic development: economic growth: the sustained increase in the output of goods and services of a society, economic development: economic growth accompanied by changes in the technical and institutional arrangements by which output is produced. Can we have economic growth without economic development: yes, output can increase simply by increasing the inputs in production. Agricultural economies increase simply by a growing population expanding and bringing more acres under cultivation. What comes first in spurring on economic development the economic growth or the structural change: an ambiguous chicken-and-egg dilemma. The link between economic growth and economic development today: we use these terms interchangeably because we acknowledge that sustained economic growth is only possible with institutional and technical change. (clean water, education system, creditable bank, etc. ) The u. s. economy today will one day (centuries from now) be considered undeveloped. Simply put, there is no endpoint to economic development.
