National Differences in

Economic Development
Christy Veronica
Irene Zaneta S
M. Kevin Muhfly
Maryam Rizkina
Priscillia Junita
Thalia Oktariani P
What is Economic Development?

Economic Development is the process focusing on both qualitative and

quantitative growth of the economy.
Difference Between Economic Growth vs Economic Development

Economic growth is the increase in goods & Services produced by an

economy or nation, considered for a specific period of time. The rise in
the country’s output of goods and services is steady and constant and
may be caused by an improvement in the quality of education,
improvements in technology or in any way if there is a value addition in
goods and services which is produced by every sector of the economy.

Economic Development measures all the aspects which include people

in a country become wealthier, healthier, better educated, and have
greater access to good quality housing.
Why is Economic Growth important?

Economic growth is one of the most important indicators of a healthy

economy.
One of the biggest impacts of long-term growth of a country is that it
has a positive impact on national income and the level of employment,
which increases the standard of living.
As the country’s GDP is increasing, it is more productive which leads to
more people being employed. This increases the wealth of the country
and its population.
Six Factors That Affect Economic Growth

1. Natural Resources

2. Physical Capital or Infrastructure

3. Population or Labor

4. Human Capital

5. Technology

6. Law
Six Factors that Limit Economic Growth
1. Poor health and low levels of education
2. Lack of necessary infrastructure
3. Flight of Capital
4. Political Instability
5. Institutional Framework
6. The World Trade Organization
Types of Economic Growth
There are primarily four types of economic growth:
1. Boom and Bust Business Cycles
2. Export-led
3. Consumer
4. Commodity exports
Costs of Economic Growth

There are two problems associated with the economic growth:

1. Environmental Costs

2. Rising Income Inequality

• What Is a Macroeconomic Factor?
• A macroeconomic factor is an influential fiscal, natural, or geopolitical
event that broadly affects a regional or national economy. Macroeconomic
factors tend to impact wide swaths of populations, rather than just a few
select individuals. Examples of macroeconomic factors include economic
outputs, unemployment rates, and inflation. These indicators of economic
performance are closely monitored by governments, businesses and
consumers alike.
• ‘micropolitics’ is a specific perspective in organization theory. It focuses on
‘those activities taken within organizations to acquire, develop, and use
power and other resources to obtain one's preferred outcomes in a
situation in which there is uncertainty or dissent’ (Pfeffer 1981 p. 7)
because it considers them as most important for the constitution and the
workings of organizations.