How Is Economic Development Different Than Economic Growth

Econ 201 Emily Rutledge Case Study 1 The Meaning of Development: How is Economic Development Different than Economic Growth? Numbers can say a lot about the economic health and general prosperity of a nation. But, as we ve learned in the case of Brazil and Costa Rica, some numbers can be far more important than others. Even if your country is experiencing phenomenal economic growth, its people may be suffering. In many cases, economic development is needed before economic growth can make a real difference. High economic growth can even hurt the people, especially those in poverty, if the country has not reached a certain level of economic development. This analysis of Brazil and Costa Rica seeks to define, compare, and contrast economic development and economic growth and their presence and affect on the two countries. As we know from macroeconomics, Gross Domestic Product is the sum of consumption, investment, government spending, and exports. We use GDP to understand the economic health of a country. If GDP is going up, the country is experiencing economic growth. Through growth accounting, we c ould also assume that we could see an increase in economic growth if we used the Cobb-Douglas function and saw an increase in output. The Cobb-Douglas function is essentially a more complicated form of the production function that states that output itself is a function of its inputs (capital and labor) and is augmented by technology. Economic development isShow MoreRelatedDevelopment And Development Of The Field Of Community Economic Development1633 Words   |  7 PagesTorres, Maria CED 301 Midterm Development and growth go hand-in-hand in the field of Community Economic Development. Community economic development is a field of study that actively elicits community involvement when working with government, and private sectors to build strong communities, industries, and markets (Riley, 2012). 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