Does Economic Growth and Development Differ? Exploring the Theoretical Divide Between Economic Growth and Development

Abstract

This paper delves into the nuanced distinction between economic growth and economic development, unravelling their theoretical underpinnings and divergent implications. Employing a comprehensive review of relevant literature, the study navigates through traditional definitions and contemporary perspectives to establish a theoretical framework that differentiates these two concepts. Drawing from prominent theorists like Hirschman, Wallerstein, and Tvaronaviciené, the analysis scrutinizes indicators such as Gross Domestic Product (GDP), Gross National Product (GNP), and Human Development Index (HDI). The theoretical exposition dissects the historical context, exploring how economic growth often masks disparities and inefficiencies inherent in economic development. Furthermore, the paper investigates the impact of globalization, neo-liberal policies, and participatory approaches on shaping these paradigms. In conclusion, the study advocates for a nuanced understanding of economic progress, emphasizing the need for an inclusive, adaptive, and context-specific approach to foster genuine economic development.