Thr definition is to be distinguished economic growth with economic development. Economic growth in this artikel, the author wants to emphasize that economic growth is just one aspect of economic development which emphasizes on improving the particular aggregate output per capita aggregate output.
Economic growth can be interpreted as a process of change a country's economic condition is continuously towards a better situation for a certain period. Economic growth can be interpreted also as a process of the production capacity of an economy are realized in the form of an increase in national income.
The economy is said when the amount of growth of real remuneration for the use of production factors in a given year is greater than the previous year.
Indicators are used to calculate the level of economic growth
- Growth rate of GDP (Gross Domestic Product)
- Growth Rate GNP (Gross National Product)
In practice numbers, GNP is less commonly used, the more popular used is GDP, since GDP numbers only see boundaries, limited to the country concerned.
Economic Development Differences in Economic Growth
- Economic development is more qualitative, not only increase production, but there are also changes in the structure of the economy.
- Economic growth is more quantitative success, namely the increase in incomes and standards of production output levels produced
Eq Economic Development with Economic Growth
- Both are trends in the economic field.
- The subject matter is the amount of final per capita income.
- Both of them became the responsibility of government and require the support of the people.
- Both affect the welfare of the people.
Factors Affecting Economic Growth
- Human Resources factor, same with the process of development, economic growth is also influenced by HR. Human resources is the most important factor in the development process, how quickly the development process depends on the extent of human resource development as a subject has sufficient competence to carry out the development process.
- Factors Natural Resources, Most developing countries rely to natural resources in carrying out the construction process. However, natural resources alone does not guarantee the success of the process of economic development, if not supported by kemampaun human resources in managing the natural resources available. Natural resources referred dinataranya soil fertility, mineral wealth, mining, forest products and the wealth of marine wealth.
- Factors Science and Technology, development of science and technology that increasingly encourages rapid acceleration of the development process, change the pattern of the original work using the human hand was replaced by sophisticated machines to the aspects affecting the efficiency, quality and quantity of a series of economic development activities undertaken and the ultimately resulting in the acceleration of economic growth.
- Cultural factors, cultural factors impact on economic development itself is done, these factors can act as a generator or driving the development process but can also become an obstacle to development. Culture that can encourage the development of such hard work attitude and work smart, honest, hardworking and so on. The culture that may hinder the development process including the anarchist attitude, selfish, wasteful, service learning, and so on.
- Capital resources, capital resources needed to cultivate human resources and improve the quality of science and technology. Capital resources in the form of capital goods is very important for the development and facilitation of economic development because of capital goods may also increase productivity.