CHAPTER I

PRELIMINARY

A. BACKGROUND
Many developing countries in the world have succeeded in showing economic
growth in the country itself, but there are still many problems in the country itself, such as:
unemployment, a very high birth rate, a lack of experts, and the difficulty of getting a place to
work. This situation was also highlighted by experts in economics with the problem of
"development is not the meaning of development"
Economic growth and economic development are often linked to the same thing by
some economists, but on the basis of these two things differ in understanding. With the
existence of economic growth there will be economic development itself where economic
growth itself will emerge economic development development.
These changes in various economic sectors will result in economic growth, which is
marked by rising national production, national income, and per capita income. Such a
situation will take place continuously.

B. PROBLEM FORMULATION
1. What is the meaning of economic growth?
2. What are the differences in economic growth and economic development?
3. How to calculate economic growth
4. Indicators of calculating economic growth
5. Benefits of economic growth

C. PURPOSE
1. Can distinguish economic growth and economic development
2. Can calculate economic growth

CHAPTER II
DISCUSSION

A. Definition of Economic Growth

Economic growth (economic growth) is the development of activities in the economy that cause
goods and services produced in society to increase and prosperity of the community increases. The
problem of economic growth can be seen as a macroeconomic problem in the long run. The
development of the ability to produce goods and services as a result of increasing factors
production in general is not always followed by increased production of goods and services the same
size. The potential increase in production is often greater than the actual increase in production.
Thus economic development is slower than its potential. (Sadono Sukirno, 1994; 10).
Economic growth can also be interpreted as a process of increasing the production capacity of an
economy which is realized in the form of an increase in national income.
The economy is said to experience growth if the amount of real remuneration against the use of
production factors in a given year is greater than the previous year. Sustainable economic growth
must lead to higher real living standards and increased employment.
According to Sadono Sukirno (1996: 33), economic growth and development has a different
definition, namely economic growth is the process of increasing per capita output that is continuous
in the long run. Economic growth is one indicator of the success of development. Thus the higher
economic growth is usually the higher the welfare of the community, although there are other
indicators, namely the distribution of income.
Simon Kuznet defines a country's economic growth as "the country's ability to provide
economic goods that continue to increase for its population, the growth of this capability based on

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technological and institutional advances and adjustments to the ideology it needs".
Indicator used to calculate the level of Economic Growth
• GDP (Gross Domestic Product) Growth Rate
• PNB Growth Rate (Gross National Product)
In the practice of numbers, PNB is less commonly used, the most popular one being used is GDP,
because the GDP number only looks at regional boundaries, limited to the country concerned.
Source of Increase in Economic Growth
Economic growth is generally defined as an increase in real GDP per capita. Gross Domestic Product
(Gross Domestic Product, GDP) is the total market value of a country's output, which is the market
value of all finished goods and final services produced during a certain period of time by production
factors located within a country.
An increase in GDP can arise through:
1. Increase in labor supply
Increasing supply of labor can produce more output. If the stock of fixed capital while labor
increases, new workers tend to be less productive than the old workforce.
2. Increase in physical capital or human resources
An increase in capital stock can also increase output, even if it is not accompanied by an increase in
the labor force. Physical capital raises both labor productivity and provides directly valuable services.
Investment in human capital is another source of economic growth.
3. Increase in productivity
The increase in input productivity shows that each particular input unit produces more output. Input
productivity can be influenced by factors including changes in technology, advances in other
knowledge, and economies of scale of production. (Case and Fair, 1999; 326)
Differences in Economic Development with Economic Growth
1. Economic development is more qualitative, not only increasing production, but also changes in
the structure of the economy.
2. Successful economic growth is more quantitative in nature, namely an increase in income
standards and the level of production output produced
Equality of Economic Development with Economic Growth
2. The final issue is the amount of income per capita.
3. Both are the responsibility of the government and require popular support.
4. Both have an impact on people's welfare
B. Calculation of Economic Growth
To be able to know the level of economic growth, it must be understood in advance what is meant
by Gross Domestic Product (GDP) or Gross Domestic Product (GDP).
GDP or GDP is the total production of goods and services produced in a region for a certain period,
for example, one year. (At the provincial level in Indonesia it is usually called Gross Regional
Domestic Product - GRDP)
GDP if divided by population becomes GDP per capita. This size is more specific because it takes into
account the population and reflects the welfare of the population in a place.
There are many opinions regarding the causes of the ups and downs in the total production of goods
and services, but many economists agree on the following two causes:
(1) Source of growth. Economists often refer to three sources of growth, namely: (a) increase in
labor, (b) increase in capital, and (c) increase in the efficiency with which these two factors are used.
The amount of labor can increase if available workers work longer hours, or if there are additional
new workers. While the capital stock can increase

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CHAPTER III
COVER

A. CONCLUSION
Economic growth in each country also differs depending on the per capita income itself and depends
on the income of the population. The higher the income of the population, the higher the economic
growth in the country and vice versa with the income of the population itself will have an impact on
the low national income in the country itself. Today's economic growth has an impact on the lives of
the inhabitants of a country. All affect the welfare of the people. Therefore the State continues to
advance their national income by increasing prices of basic necessities such as fuel oil (BBM) by
making national income that will be better and the level of our economy even better.

B. SUGGESTIONS
C. The government can create enthusiasm or spirit to encourage the achievement of rapid economic
growth and not only requires the development of supply factors, which increase community
production capacity, natural and human resources, capital, and technology, but also foreign demand
factors. Without the increase in production potential it cannot be realized.

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 DAFTAR PUSTAKA

http://jurnal-sdm.blogspot.com/2010/01/pertumbuhan-ekonomi-definisi-sumber.html
http://cafe-ekonomi.blogspot.com/2009/05/makalah-pertumbuhan-ekonomi.html
http://adie-wongindonesia.blogspot.com/2010/02/makalah-pertumbuhan-ekonomi-
definisi.html
http://ekonomi.kompasiana.com/bisnis/2009/11/19/mudahnya-menghitung-pertumbuhan-
ekonomi/
http://translate.google.co.id/translate?hl=id&langpair=en|id&u=http://tutor2u.net/economics/r
evision-notes/as
http://www.ekonomirakyat.org/edisi_16/artikel_1.htm
http://almasdi.unri.ac.id/bahan_ajar/Ekonomi_Pembangunan/Pertemuan_3_pertumbuhan%20
ekonomi.pdf

MAKALAH
ECONOMIC GROWTH

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 Vikri Ganjar Anugrah
Muhammad Khalid

TABLE OF CONTENTS

FOREWORD i
TABLE OF CONTENTS ii
CHAPTER I INTRODUCTION 1
1.1 Background to the Problem 1
1.2 Formulation of the Problem 1
1.3 Objectives and Benefits 1
CHAPTER II DISCUSSIO 4
A. The importance of economic growth 2
B. economic growth calculations 5
C. benefits of economic growth 5
CHAPTER III CLOSING 6
A. Conclusion 6
B. Suggestions 6
BIBLIOGRAPHY 7

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FOREWORD

I offer all praise and gratitude to God Almighty, because of the blessings and abundance of grace, I
may finish a paper in a timely manner.

Following this the author presents a paper with the title

" ECONOMIC GROWTH"
Through this introduction, the writer first apologizes and asks for an explanation where the contents
of this paper are lacking and there are writings that I have made that are not right or that I feel the
readers' feelings.

I hereby present this paper with gratitude and may Allah SWT bless this paper so that it can provide
benefits.

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