Economic Growth Concept Analysis

2.1.2 CONCEPT OF ECONOMIC GROWTH

There are different meanings among scholars, about the concept of economic growth. For example, while Herrick and Kindleberger (1983) put it that economic growth involves employment of factors of production in order to produce a higher level of outputs that can improve the quality and standard of living of the people. Economic growth does not only come from expansion or physical factors but due to improvement in both human and physical as well as volume trade (Ranis et al (2000) and Jhingan (1985) cited in Gafar et al (2011)). Ranis et al (2000) in particular, posits that economic growth is a two way relationship. First economic growth induces development of human resources where with increased economic activities

However, despite the limitation enunciated above, sustainable and persistent increase in per capita output and net national output is a good description of economic growth (Dwivedi, 2006). DFID (2011) elaborates that economic growth occurs through persistent increase and improvement in the ability to satisfy demand for goods and services as a result of increased level of

Persistent economic growth sustained over a long period of time results into economic development and by this the challenge of wide income inequality would have been catered for. This study deduces economic growth as a state when there is increase in output, employment and wellbeing and can be achieved through enhanced efforts on monetary and fiscal policy regulations, trade and tax policies; through efforts that provide infrastructure and social services; and through employment generation and retention through specific effort in business, finance, manpower development, small business development, technology transfer and real estate development. The study will adopt the real value definition of economic growth because of its tendency to take care of inflation as a crucial phenomenon on finance and