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A Growth Rate for a Sustainable Economy

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  • Alessio Emanuele BIONDO
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    Abstract

    A sustainable growth rate – i.e. a growth rate which allows economy to expand without compromising the equilibrium of the natural system – is one of the most important and stimulating topics in growth literature. In this paper two findings will be presented. First of all, a brief discussion of both concepts – growth and development – is presented. A new sight for their relationship is suggested. The usual distinction between quantitative and qualitative variables is shown to be unsatisfactory. Growth and development must fit in a sustainability framework and therefore, progress should be based on steps of sustainable economic growth in order to have higher development levels. Secondly, a two-sector-closed-economy model is presented to demonstrate the existence of a positive sustainable growth rate for the GDP.

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    Bibliographic Info

    Article provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.

    Volume (Year): 5 (2010)
    Issue (Month): 2(11)/Summer2010 ()
    Pages: 7-20

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    Handle: RePEc:ush:jaessh:v:5:y:2010:i:2(12)_spring2010:p:7

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    Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14
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    Keywords: economic growth; sustainable growth; development; sustainability;

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