The Concept of Economic Growth
and Development
Economic growth include changes
in material production and during a
relative short period of time, usually one
year. In economic theory, under the
concept of economic growth implies an
annual increase of material production
expressed in value, the rate of growth of
GDP or national income. Growth can be
achieved, for it does not achieve the
developmental course of the economy.
So economic development amounts
(JPMNT) Journal of Process Management – New Technologies, International
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involves not only an increase in material
production, but also all the other socioeconomic processes and changes caused
by the influence of economic and beyond
economic factors.
Economic development is therefore
expressed in a longer period of time.
Economic development of an economy
consists of a series of structural changes.
The economic development of the
country will be achieved through greater
participation of the processing capacity
of industrial production (secondary
sector), and at higher levels is
increasingly dominated by service sector
(tertiary sector).
For the economic development of any
country is also of great importance and
changes in production structure and
introduction of new products, new
products, new techniques and
technologies, new processes of
production, raw materials, new energy
sources. Changes in the distribution of
factors of production, ie in their new
location, and not only labor, but of the
entire technical potential. As for the
operating assets, reallocation of technical
potential is done through the engagement
of cash accumulation, in order to build
new generating capacity. Economic
development means greater and more
effective involvement of the economy of
a country in the international economy.
The development includes the evergrowing share of accumulation in the
national income. Thus, economic
development represents a very complex
process and phenomenon. Economic
growth, measured by the percentage
increase in national income per capita,
can not really be realistic indication of
the achieved level of economic
development (Peru, 1986). Economic
development is not just an increase in
GDP and national income, but all the
long-term socio-economic changes in the
economy of a country. It is very
important that, above all, political
economy, deals with the problems of
economic development. First of all, the
purpose of creating and managing
development and economic policy.
