GROWTH ECONOMICS Meaning and
Definition
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Growth economics refers to the branch of economics that focuses on the study of economic growth or the increase in the production and consumption of goods and services over a specific period of time. This field aims to understand the factors and mechanisms that drive economic growth, as well as the implications and consequences of sustained growth for individuals, industries, and societies.
In growth economics, economists analyze a wide range of factors that contribute to economic growth, such as technological progress, capital accumulation, human capital development, investment, productivity improvements, and resource allocation. They also examine the role of government policies, institutions, and market structures in promoting or inhibiting growth.
One key concept within growth economics is the notion of sustainable economic growth, which emphasizes the importance of achieving long-term growth without depleting finite resources or causing significant harm to the environment. This involves assessing the costs and benefits of various growth strategies, balancing economic growth with environmental conservation, and promoting inclusive growth that benefits all segments of society.
The study of growth economics has important implications for policy-making and decision-making at both the national and international levels. It helps policymakers understand how to foster economic growth, reduce poverty, create jobs, enhance living standards, and promote overall welfare. Moreover, growth economics provides insights into the dynamics of economic development and informs strategies for reducing income inequality and addressing socioeconomic disparities.
Etymology of GROWTH ECONOMICS
The term "growth economics" is not attributed to a specific etymology as it is a combination of two separate words: "growth" and "economics".
1. "Growth" comes from the Middle English word "growen", which finds its roots in the Old Norse "grōa" meaning "to grow, increase". The word eventually entered Middle English during the 14th century.
2. "Economics" is derived from the Greek word "oikonomia", which refers to household management or administration. The word combines "oikos" meaning "house" and "nomos" meaning "laws" or "rules". In turn, "economics" appeared in its English form in the early 17th century.
Combined, "growth economics" refers to the study of economic systems focusing on growth, development, and the increase of material wealth or well-being within an economy.
