Definition of economic growth (economic growth) by G. Bannock, RE Baxter and R. Rees in A Dictionary of Economics is a process that remains of the increase in the productive capacity of an economy which is manifested in the form of increase in national income. According to Simon Kuznets economic growth never through mclompat step down, but it is an evolutionary process and are specific to each country. Therefore, economic growth is an increase in production per capita proscs the ongoing from year to year in a long period of time in a country. Economic growth is said to increase when there is an increase in real GNP of the previous year.
Definition of Economic Development
Growth and economic development are two sides of economic life is closely connected and influence each other. Economic development promote economic growth, economic growth otherwise expedite the process of economic development. Economic growth is an indication of the success of economic development. According to Paul Strecten concepts of physical growth must be accompanied by a change of mind so he concluded the need for economic development which include the following.
a. Growth is a tangible physical reality in the form of production and revenue.
b. Changes in the way of thinking that seems to change social institutions, administration, attitudes, and culture.
According to Simon Kuznets, based on his observations in developed countries, he concluded that any process of economic development there will be three signs, namely
a. Production, both in quantity and kind constantly increasing.
b. Technology is constantly evolving.
c. So that it becomes an element of economic development which can not be separated from the growth of technology, institutional adjustments needed ideology and attitude to life.