Growth and Development.ppt

Growth and Development ECON 205W Summer 2006 Prof. Cunningham What is growth? Economic growth is the increase of a nation’s real output (GDP). Results from: Greater quantities of natural resources, human resources, and capital, Improvements in the quality of resources, and Technological advances that boost productivity. Development Economic development is the process by which a nation enhances its standard of living over time. The economic standard of living is often defined as GDP per capita. Growth and Development Models Harrod and Doman—Keynesian Growth Solow—Neoclassical growth Schumpeter