Economic
growth as a concept is viewed differently by different scholars. This is
attributed to the condition prevailing at the time of these scholars. Majority
accept it as an increase in the level of national income and output of a
country. According to Dewett (2005), it implies an increase in the net national
product in a given period of time. He explained that economic growth is
generally referred to as a quantitative change in economic variables, normally
persisting over successive periods. He added that determinants of economic
growth are availability of natural resources, the rate of capital formation,
capital-output ratio, technological progress, dynamic entrepreneurship and
other factors.
Todara and Smith (2006) defined economic growth as a steady
process by which the productive capacity of the economy is increased over time to
bring about rising levels of national output and income. Jhingan (2006) viewed
economic growth as an increase in output. He explained further that it is
related to a quantitative sustained increase in the country’s per capita income
or output accompanied by expansion in its labour force, consumption, capital
and volume of trade.
The main characteristics of economic growth are high rate
of growth of per capita income or output, high rate of productivity, high rate
of structural transformation, international flows of labour, goods and capital
(Ochejele, 2007). Economic growth can also be measured in terms of Gross
Domestic Product (GDP) and Human Development Index (HDI), which is an index
that measures national growth based on measures of life expectancy at birth,
education attainment, literacy, and adjusted real per capita income.
Synthesizing insights of these
definitions, we define economic growth as the process by which national income
or output is increased. Thus, an economy is said to be growing if there is a
sustained increase in the actual output of goods and services per head.