Chapter 28: Economic development and sustainable development

natural factors

increase in quality and/or quantity of a factor of production

human capital factors

increase in quantity of human capital

physical capital and technological factors

improving quality and/or quality of physical capital

capital widening

extra capital is used with an increased amount of labour, but the ratio of capital per worker does not change

capital deepening

increase in the amount of capital for each worker

institutional factors

economic growth is the existence of certain institutions (banking, education, legal system)

economic development

a complex concept, inclusive economic growth

economic growth

an increase in the real output of an economy over time

sustainable development

development that meets the needs of the present without compromising the ability of the future generations to meet their own needs

sustainable development goals

universal goals that meet the urgent environmental, political and economic challenges facing the world

child dependency ratio

percentage of those who are non-productive, under the age of 15, expressed as a percentage of those of working age, usually 15 to 64

old age dependency ratio

percentage of those who are non-productive, over the age of 65, expressed as a percentage of those of working age, usually 15 to 64