Economic Development and Job Growth



Table of Contents

Introduction3

Economic Growth and Economic Development4

Economic Development5

Theories of Economic Development6

Take off6

The hypothesis of backwardness and convergence7

Balanced growth7

Industrialization versus agriculture7

Guidance inwards or outwards8

State or market8

Economic Growth9

Growth Factors10

Capital10

Earth11

Employment11

Technical knowledge12

Factors limiting the rate of economic growth12

Cost of Growth13

Economic and Sustainable Development14

Economic Performance of a Country17

Grouping countries by their level of development19

Relation with employment and Job Creation19

Economic Activity and Employment21

Market Economy and the Four Pillars23

The First Pillar: The ability to obtain employment23

The Second Pillar: Entrepreneurship24

The Third Pillar: Adaptability24

The Fourth Pillar: Equality of Opportunity25

Job Creation and Job Growth27

Summaries of Related Researches29

Conclusion31

References33

Economic Development and Job Growth

Introduction

Since development is a process that involves comprehensive economic, social and environmental as well as in this work adopting an interdisciplinary approach. It tries to describe and explain the complex relationships between various aspects of development, such as population growth, economic growth, improvements in education and health and most importantly employment. Employment has a direct relation with economic development and growth. In this paper, we discuss the concept of economic development along with the theories on the basis of the concept of economic growth. An analysis the relation of economic development with job creation and job growth has been done with evaluation of previous related researches.

Subject to economic growth is very important to fully understand the functioning of the market economy and is one of the main problems of macroeconomic policy. Before a more thorough analysis of this issue, we should realize the difference between the concepts of economic development and economic growth. Both in the economic literature and in economic practice, it is usually identified as the term "growth" and "development" primarily economic because of the difficulty to separate them from each other and use the same measure, i.e. the rate of national income and national income per capita. Both of these concepts, however, have different meanings.

Economic Growth and Economic Development

Commonly the terms growth, development and progress are often used as if they were synonymous. However, we must distinguish between them, even if such a distinction is established with certain arbitrariness. Rondo Cameron, in his book World Economic History defining economic growth and sustained increase in total output of goods and services produced in a given society (Allen and Thomas, 2000).The growth in total output can be either by an increase in factors of production including land, labor and capital, or because there is an increase in productivity of the factors used. If population increases output growth may be total, but not necessarily of per capita, more even, if the growth rate of the population grows faster than the product, the result will be a decrease in per capita, as has occurred in recent years in some developing countries.

The term economic development means economic growth accompanied by a substantial variation in the structure or organization of the economy, for example, moving from a subsistence economy to local markets and trade, or the relative growth production of industrial goods and services for agriculture (Chenery and Srinivasan, 1999). Structural change or organization can be the "cause" of ...