Economic Growth and Development

Economic Growth and Development is a central field of applied macroeconomics that examines the processes by which a nation's wealth and standard of living increase over time. While economic growth refers specifically to the sustained increase in a country's real output of goods and services, typically measured by GDP per capita, economic development is a broader concept encompassing structural transformations and improvements in human welfare, such as advancements in health, education, and infrastructure. This area of study analyzes the key drivers—including capital accumulation, technological innovation, and institutional quality—to understand why some countries achieve long-term prosperity and an improved quality of life while others struggle with poverty and stagnation.

1. Introduction to Economic Growth and Development
   1. Defining Economic Growth
      1. Concept of Economic Output
         1. Flow vs. Stock Variables
         2. Aggregate Production and Value Added
         3. Market vs. Non-Market Production
      2. Real vs. Nominal Growth
         1. Adjusting for Inflation
         2. Price Indices and Deflators
            1. Consumer Price Index (CPI)
            2. GDP Deflator
            3. Producer Price Index (PPI)
         3. Base Year Selection
         4. Chain-Weighted Indices
      3. Measuring Growth: Gross Domestic Product (GDP)
         1. Definition and Components of GDP
            1. Expenditure Approach
            2. Income Approach
            3. Production Approach
         2. GDP per Capita
            1. Population Adjustments
            2. Median vs. Mean Income
         3. Purchasing Power Parity (PPP) Adjustment
            1. International Price Comparisons
            2. PPP Exchange Rates
            3. Penn World Table
         4. Limitations of GDP as a Growth Measure
            1. Underground Economy
            2. Household Production
            3. Environmental Costs
            4. Income Distribution Effects
      4. Alternative Measures of Output
         1. Gross National Product (GNP)
         2. Net National Product (NNP)
         3. Gross National Income (GNI)
         4. Net Domestic Product (NDP)
   2. Defining Economic Development
      1. Broader Scope than Growth
         1. Qualitative vs. Quantitative Change
         2. Structural Transformation
         3. Institutional Change
      2. Key Dimensions of Development
         1. Health and Life Expectancy
            1. Infant Mortality Rate
            2. Maternal Mortality Rate
            3. Access to Healthcare
            4. Nutrition and Food Security
            5. Disease Burden
         2. Education and Literacy
            1. Primary Enrollment Rates
            2. Secondary Enrollment Rates
            3. Tertiary Education Access
            4. Adult Literacy Rates
            5. Quality of Education
            6. Gender Parity in Education
         3. Standard of Living
            1. Access to Basic Services
            2. Housing Quality and Affordability
            3. Infrastructure Development
            4. Water and Sanitation
            5. Energy Access
         4. Political Freedom and Human Rights
            1. Civil Liberties
            2. Political Participation
            3. Press Freedom
            4. Judicial Independence
            5. Rule of Law
         5. Environmental Sustainability
            1. Natural Resource Management
            2. Pollution Control
            3. Biodiversity Conservation
            4. Climate Resilience
      3. Multidimensional Nature of Development
         1. Capability Approach
         2. Sen's Development as Freedom
         3. Interconnected Development Goals
   3. Distinguishing Growth from Development
      1. Differences in Focus and Measurement
      2. Growth without Development Examples
      3. Development without Growth Scenarios
      4. Interdependence of Growth and Development
   4. Historical Overview of Global Growth
      1. Pre-Industrial Economic Conditions
         1. Agricultural Societies
         2. Limited Technological Progress
         3. Population Constraints
      2. The Malthusian Trap
         1. Population Dynamics and Resource Constraints
         2. Subsistence Living Standards
         3. Demographic Cycles
      3. The Industrial Revolution
         1. Technological Innovations
         2. Factory System Development
         3. Transportation Revolution
         4. Capital Accumulation
         5. Productivity Growth
      4. The Great Divergence
         1. European Economic Expansion
         2. Asian Economic Stagnation
         3. Colonial Impact
         4. Regional Differences in Growth
      5. Post-WWII Growth Miracles
         1. East Asian Tigers
            1. South Korea
            2. Taiwan
            3. Hong Kong
            4. Singapore
         2. Japanese Economic Miracle
         3. Latin American Import Substitution
         4. African Post-Independence Experiences
      6. Recent Trends in Global Growth
         1. Emerging Market Growth
         2. China's Economic Rise
         3. India's Development Path
         4. African Growth Renaissance
   5. Stylized Facts of Economic Growth
      1. Kaldor's Facts
         1. Constant Growth Rates
         2. Capital-Output Ratios
         3. Labor Share of Income
         4. Rate of Return on Capital
         5. Capital-Labor Ratios
         6. Real Wage Growth
      2. Modern Growth Facts
         1. Cross-Country Income Differences
         2. Growth Rate Variations
         3. Convergence Patterns
         4. Role of Technology
         5. Human Capital Importance