In general, the problems that the underdeveloped countries are dealing with is called economic development while economic growth refers to the developed countries. Raising of incomes is often called as economic growth for richer countries while economic development for poor ones. However, this view doesn't specify underlying forces, which raises the level of income in the 2 said types of economies. The problems in underdeveloped countries are more concerned with development of unused resources.
According to the site location consultants, the terms Growth and Development has nothing to do with the economy whether you believe it or not. The difference between the 2 relates to the causes of change and nature. Also, these 2 terms can be explained as development in a spontaneous and discontinues change in stationary state, which displaces and alters the equilibrium state that previously exist. It'll soon increase in rate of population and savings in the long run while the growth seems to be steady and gradual change. This view has been elaborated and accepted by numerous economists like it or not.
To other schools, they are defining economic growth as more output while economic development is employing both changes in institutional and technical arrangements by which it's distributed and produced and more output. Growth may be involved not only in the output derived from getting greater inputs but better efficiency at the same time.
The growth is the expansion of a system in one or several dimensions without changing its structure according to some economist. On the other hand, site selection development is the innovative process resulting the structural transformation of the social system.
Then again, there are some economists stating that economic development is the process of attracting new companies and generating businesses to join the region of development or city. Economic development is the best path to take especially for cities with the intentions of broadening their tax base and to create new jobs for its citizens.
A city can provide new methods of bringing in businesses that would stimulate the local economy by creating jobs, revenues in municipal taxes and consumer spending by seeking for distributors, manufacturers and corporations to build or even expand their operations.
And as a result, the taxes can be raised via property ownership, revenues as well as business licensing, this in turn can help the city in paying for all administrative offices and even fund local fire and police departments. And by working closely with the local chamber of commerce, it's feasible for the city attract investors. Through this, it can help the city and sooner, the country in achieving a steady and continues progress.