Economic development – what does it mean and what does it cover?

Economic development is a socio-economic process based on an in-depth analysis of changes and changes that occur in the structure of the economy. From an economic point of view, over the years, this phenomenon has been understood as a continuous evolution of the quality of the capitalist system. It is desirable because of its close relationship with increasing the standard of living of the society. It also contributes to the development of civilization at large. The main determinants of the described process are four elements: natural and human resources, capital and technology.

Economic development is a long-term socio-economic process manifested by positive changes in the structure of the economy. It consists of improving management understood as the activity of distribution and redistribution, exchange and consumption of goods and services. It attaches great importance to the rational exploitation of the natural environment while maintaining its values ​​while improving and modifying the productive capacity of the economy. He observes the changes that take place in the functioning mechanism, the form and the nature of the market. It sheds light on various types of competition, but also government regulatory actions in relation to visible changes.

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Economic development – what is it for?

With the scope of the subject economic development three concepts are linked, covering different areas of economics. Economic growth it refers to the quantitative expansion of basic economic quantities. It is mainly: consumption, income, production and accumulation that constitute the real value of gross domestic income per capita or globally. World GDP signifies the capacity of a society to produce. Value domestic income per capita defines the standard of living of a society. Four criteria are indicated that classify all the models developed to define economic growth, namely time, number of variables, principles of construction and theoretical basis.

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