Economic growth is essential for development from "summary" of Theory of Economic Growth by W. Arthur Lewis
Economic growth plays a vital role in the process of development. Development refers to the improvement in the quality of life of people within a society. This improvement can be seen in various aspects such as increased income, better infrastructure, improved healthcare, and enhanced education opportunities. Economic growth, on the other hand, is the increase in the production of goods and services within an economy. When an economy experiences economic growth, it creates more job opportunities for the people. This leads to a decrease in the unemployment rate and an increase in the standard of living of individuals. As more people are employed, they are able to earn a stable income which allows them to afford basic necessities and improve their overall quality of life. Furthermore, economic growth leads to an increase in government revenue through taxes. This additional revenue can be used to invest in public infrastructure such as roads, schools, and hospitals. Improvements in infrastructure can have a positive impact on the economy as it can attract more investors and businesses, leading to further economic growth. Additionally, economic growth can result in technological advancements and innovations within an economy. These advancements can lead to increased productivity and efficiency in production processes. As a result, businesses can produce goods and services more efficiently, leading to higher profits and economic growth.- Economic growth is essential for development as it creates job opportunities, increases government revenue, improves infrastructure, and leads to technological advancements. Without economic growth, a society may struggle to improve the quality of life of its people and achieve overall development.
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