Economic Growth Vs Economic Development
Economic growth is the increase in an economy's gross national product (GDP). It also refers to an improvement in the quality of the product, which is reflected in improved living standards and spending. Economic development refers to improvements in a country's capital goods, which make them more effective and efficient in their production. The increased quality of capital goods increases output per worker, which in turn boosts economic growth. Human resources are essential for economic growth Economic development can only be achieved when human resources are properly utilized. This includes natural resources, but it also includes human capital. It is important to consider these resources from an asset and liability perspective. Proper utilization of human capital depends on its extent and efficiency. Physical capital Physical capital is an important part of a company's valuation, but it can be difficult to measure. For example, a new law firm will require much less phys...