Extensive growth, in economics, is growth in the quantity of output produced based on the expansion of the quantity of inputs used. It contrasts with intensive growth, which arises from inputs being used more productively. For example, GDP growth caused only by increases in population or territory would be extensive growth.[1] Thus, extensive growth is likely to be subject to diminishing returns. It is therefore often viewed as having no effect on per-capita magnitudes in the long-run.[2]
Reliance on extensive growth can be undesirable in the long-run because it exhausts resources. To maintain economic growth in the long-run, especially on a per-capita basis, it is good for an economy to grow intensively—for example, by improvements in technology or organisation, thereby shifting the economy’s production possibilities frontier outward.
^Bjork, Gordon J. (1999). The Way It Worked and Why It Won’t: Structural Change and the Slowdown of U.S. Economic Growth. Westport, CT; London: Praeger. pp. 2, 67. ISBN0-275-96532-5.
^The Transformation of the State Extensive Growth Model in Cuba's Sugarcane Agriculture 2007-07-20 at the Wayback Machine, Lázaro Peña Castellanos and José Alvarez.
April 26, 2024
extensive, growth, economics, growth, quantity, output, produced, based, expansion, quantity, inputs, used, contrasts, with, intensive, growth, which, arises, from, inputs, being, used, more, productively, example, growth, caused, only, increases, population, . Extensive growth in economics is growth in the quantity of output produced based on the expansion of the quantity of inputs used It contrasts with intensive growth which arises from inputs being used more productively For example GDP growth caused only by increases in population or territory would be extensive growth 1 Thus extensive growth is likely to be subject to diminishing returns It is therefore often viewed as having no effect on per capita magnitudes in the long run 2 Reliance on extensive growth can be undesirable in the long run because it exhausts resources To maintain economic growth in the long run especially on a per capita basis it is good for an economy to grow intensively for example by improvements in technology or organisation thereby shifting the economy s production possibilities frontier outward See also editEconomic development Economic Protection in German References edit Bjork Gordon J 1999 The Way It Worked and Why It Won t Structural Change and the Slowdown of U S Economic Growth Westport CT London Praeger pp 2 67 ISBN 0 275 96532 5 The Transformation of the State Extensive Growth Model in Cuba s Sugarcane Agriculture Archived 2007 07 20 at the Wayback Machine Lazaro Pena Castellanos and Jose Alvarez Retrieved from https en wikipedia org w index php title Extensive growth amp oldid 997591224, wikipedia, wiki, book, books, library,
