Economic growth is referred to the increase of per capita real gross domestic product over a period of time. Real GDP is a quantitative concept since it involves increased productive capacity in an economy, which leads to rising national output, incomes and living standards over time. Economic growth can occur from two main factors: 1.
The increased use of resources such as land, labour, capital and entrepreneurial resources due to improvements in technology. 2.
The increased productivity of existing resources use through increased labour and capital productivity.
In contrast, economic development is a qualitative process and refers to structural change of economic and social infrastructure in an economy, which allows an increase in the standard of living in a nation’s population.
Economic growth and development can vary from different countries, depending on their level of income, quality of life, environmental quality and the government’s involvement within the economy. The similarities and differences are evident in the Australian, Chinese and Indian economy.
The Australian market economy is one of the most competitive and strongest well-developed economies in the world, allowing it to have a relatively good economic growth and a high economic development. With a Gross Domestic Pay (GDP) of approximately 1 trillion US dollars, the country was ranked 17th largest economy (2009) by real GDP, representing about 1.7% of the World Economy. This has allowed Australia to have a high GDP of 38, 910 US dollars per capita. In recent months, the Australian economic growth rate has also accelerated, as Australia continues to maintain its’ strong and best performing economy in the developed world. The economy grew a seasonally by 1.2 percent in the June 2010 quarter, up from a revised 0.7 percent pace in the January-March period, the ABS reported. The 1.2 percent quarterly rate is the quickest since the June quarter of 2007, which indicates Australia’s strong...
Please join StudyMode to read the full document