Various economists have suggested different indicators for the measurement of economic development. The major indicators of economic development are as follows Gross National Product (GNP) Some economists have considered GNP as the indicator of economic development. According to this criterion, economic development refers to the increase in the production of an economy over a long period of time. That is, economic development can be measured in terms of an increase in the economy’s real national income over a long period of time. However, the major drawback of this indicator is that it does not take into account the changes in the population growth. It also does not include the equity aspect of development. Per Capita Income (PCI) Per Capita Income is another indicator of economic development. According to this indicator, economic development is the process whereby the real per capita increases over a long period of time. Therefore, for the economic development, growth rate of inco...

The origins of modern development economics are often traced to the need for, and likely problems with the industrialization of eastern Europe in the aftermath of World War II. The key authors are  Paul Rosenstein-Rodan,   Kurt Mandelbaum  and  Ragnar Nurkse . Only after the war did economists turn their concerns towards Asia, Africa and Latin America. At the heart of these studies, by authors such as  Simon Kuznets  and  W. Arthur Lewis  was  an analysis of not only economic growth but also structural transformation.

Development Economics  is a branch of economics which deals with  economic aspects of the development process  in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example, through health and education and workplace conditions, whether through public or private channels. Thus, development economics involves  the creation of theories and methods that aid in the determination of types of policies and practices and can be implemented at either the domestic or international level. This may involve restructuring market incentives or using mathematical methods like inter-temporal optimization for project analysis, or it may involve a mixture of quantitative and qualitative methods.Unlike in many other fields of economics, approaches in development economics may  incorporate social and political factors  to devise particular plans.

Economic Growth Economic Growth   is defined as the long term increase in per capita income of people of a nation. Hence, it is an increase in a country's real level of national output because of an increase in the quantity of resources, increase in the quality of resources, improvements in   technology   etc. which increases the value of goods and services produced by every sector of the economy. In a nutshell, the increase in productivity of an economy is called as an Economic Growth. Economic Growth is measured by an increase in a country's   GDP (Gross Domestic Product) and a country's GDP is the total monetary value of the goods and services produced by that country over a specific period of time. Economic Development Economic development   is defined as the long term increase in living standard of people of a nation. Hence, it is a normative concept i.e. it applies in the context of   people's   sense of   morality   (right and wro...

Economic development  has been defined in various ways. Generally, it refers to the  economic well being  of a nation. Economic development is the process whereby  the real per capita income of a country increases over a long period of time  subject to stipulations that  the number of people below an absolute poverty line does not increase , and that  the distribution of income does not become more unequal . In fact, economic development means  a sustainable increase in the standard of living .  Therefore, it refers not only to increase in per capita income but also the alleviation of poverty and reducing the gap between the rich and the poor. Moreover, it also incorporates other social issues such as,  education, health, freedom , rights   as well as  environmental protection .

Economic growth  is the increase in value of the goods and services produced by an economy. It is conventionally measured as  the percent rate of increase in real gross domestic product , or real GDP.  Growth is usually calculated in real terms , i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. In economics, " economic growth" or "economic growth theory " typically refers to  growth of potential output , i.e., production at "full employment," which is caused by growth in aggregate demand or observed output. As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how rich countries can advance their economies. The latter is the study of how poor countries can catch up with rich ones. Economic growth is measured as the annual percent change of gross domestic product (GDP).

John Maynard Keynes published a book entitled ‘ The General Theory of Employment, Interest, and Money’  in 1936. This book established the theoretical bases of modern macroeconomic analysis, often referred to as ‘Keynesian economics’. As “macro” suggests, this is a level of analysis that looks at the performance of the economy as a Whole—the Big Picture—with particular attention to Business Cycles, Inflation, Unemployment and Economic Growth. Moreover, macroeconomics is designed to guide government demand management policies. Macroeconomics is the branch of economics that deals with the relationships of large aggregates in order to analyze the performance of the national economy as a whole. The Keynesian approach emphasizes the need for sustaining levels of total or aggregate demand adequate for the full employment of productive capacity. The policy tools of demand management are used to promote economic growth, reduce inflation and unemploym...