Open AccessDEVELOPMENT OF ECONOMIC THEORY – FROM THEORIES OF ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT TO THE PARADIGM OF SUSTAINABLE DEVELOPMENT
Author(s) -
Inese Pelša,
AUTHOR_ID,
Signe Bāliņa
Publication year - 2022
Publication title -
diem
Language(s) - English
Resource type - Journals
eISSN - 1849-3645
pISSN - 1849-3653
DOI - 10.17818/diem/2022/1.10
Subject(s) - gross domestic product , economics , sustainable development , life expectancy , context (archaeology) , per capita , standard of living , economic expansion , economic growth , economic statistics , public economics , development economics , macroeconomics , political science , sociology , geography , market economy , population , demography , archaeology , law , econometrics
Rapid economic growth is a relatively recent phenomenon, which has been examined since the end of the 18th century. In the scientific literature researchers use the concept of “economic growth” and “economic development” when analyzing economic processes. “Economic growth”, as defined by Paul M. Romer occurs whenever people use resources and rearrange them in more valuable ways. Thus, economic growth means an increase in a real national income / national output. In contrast, economic development is an improvement of the quality of life and living standards, e.g. improvement of literacy, life expectancy, and approach to environmental issues. Economic development encircles a wider range of metrics than just gross Domestic Product (GDP) per capita, it is about actual standard of living, level of environmental standards, availability and quality of housing and other aspects. The article analyzes, compares and evaluates theories of economic growth and economic development in the context of sustainable development.