John Stuart Mill, one of a person who contributes the idea in classical school, had states of his thought about economic development. But he use the term of "dynamic economy" to explain about what is calling as economic development. In his theory of motion, he stated that a dynamic refer to the progressive change and ultimate tendency. So, we can take his explanation of dynamic economy as an economic development because it remains the same thing, where, economic development also refers about the progressive change and ultimate tendency.
In his Book IV, "Influence of the Progress of society on Production and Distribution", Mill forecast increasing production and population, continuing growth of society's master over nature, increase security of person and property and a growing role of corporation. He added, the improvement in industrial production would be offset by diminishing return in agriculture and mining as the population continued to grow. We can see clearly the statement above is what Mill trying to explain and to give us a picture of dynamic economy. Economy will develop if has the support of the technology to improve the production. This technology, as known as technology advancement, will make the industry able to maximize the satisfaction of unlimited demand in the market. Thus, it will bring the progressive change in economy.
Economic development is the development of the economic wealth of countries or region. Meanwhile, from a policy perspective, economic development can be defined as effort to improve the economic well-being incomes and the tax base of a country. There are differences between economic development and economic growth. The term of "economic growth" itself refers to increasing of a specific measures such as real nation income, gross domestic product, or per capita income. The nation income or product is always expressed in term of a measure of the agregate value added output of the domestic economy as we called gross domestic product (GDP). When the value of GDP a nation is increasing, the economist will refer the increasing as the economic growth. Meanwile, the term "economic development" is on the other hand, it is typically refers to the improvement in a variaty indicators such as literacy rates, life expectancy and poverty rate. It is really defferent with GDP because GDP is a specific measure of economic welfare that does not take important aspects as leisure time, environmental quality, freedom, or social justice. Economic growth of any specific measure is not a sufficient definition of economic development. Moreover, the term of development is using frequently nowadays and it is closely bound up with the evolution of capitalism and the demise of feudalism. In addition, economic develompent are also focuses on the recruitment of business operation to a region, assisting in the expansion or retention of business operation within a region or assisting in the start-up of new business within a region. Hence, economic development can be seen as a comples multi-dimensional comcept involving improvement in human well-being and the country.
*Prepared by Dzul Hadzwan Hj Husaini and Rashidah Abdullah.
Refference : Stanley L. Brue. The Evolution of Economic thought. 6th ed. Thomson South-Western. US. 2000
In his Book IV, "Influence of the Progress of society on Production and Distribution", Mill forecast increasing production and population, continuing growth of society's master over nature, increase security of person and property and a growing role of corporation. He added, the improvement in industrial production would be offset by diminishing return in agriculture and mining as the population continued to grow. We can see clearly the statement above is what Mill trying to explain and to give us a picture of dynamic economy. Economy will develop if has the support of the technology to improve the production. This technology, as known as technology advancement, will make the industry able to maximize the satisfaction of unlimited demand in the market. Thus, it will bring the progressive change in economy.
Economic development is the development of the economic wealth of countries or region. Meanwhile, from a policy perspective, economic development can be defined as effort to improve the economic well-being incomes and the tax base of a country. There are differences between economic development and economic growth. The term of "economic growth" itself refers to increasing of a specific measures such as real nation income, gross domestic product, or per capita income. The nation income or product is always expressed in term of a measure of the agregate value added output of the domestic economy as we called gross domestic product (GDP). When the value of GDP a nation is increasing, the economist will refer the increasing as the economic growth. Meanwile, the term "economic development" is on the other hand, it is typically refers to the improvement in a variaty indicators such as literacy rates, life expectancy and poverty rate. It is really defferent with GDP because GDP is a specific measure of economic welfare that does not take important aspects as leisure time, environmental quality, freedom, or social justice. Economic growth of any specific measure is not a sufficient definition of economic development. Moreover, the term of development is using frequently nowadays and it is closely bound up with the evolution of capitalism and the demise of feudalism. In addition, economic develompent are also focuses on the recruitment of business operation to a region, assisting in the expansion or retention of business operation within a region or assisting in the start-up of new business within a region. Hence, economic development can be seen as a comples multi-dimensional comcept involving improvement in human well-being and the country.
*Prepared by Dzul Hadzwan Hj Husaini and Rashidah Abdullah.
Refference : Stanley L. Brue. The Evolution of Economic thought. 6th ed. Thomson South-Western. US. 2000
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