Economic development why is it important

Economic development gears up economic activity and economic productivity. It increases the productivity and efficiency of all productive resources and also helps to increase the production volume.

In this importance of economic development , it results in an increase in per capita income which in turn increase the national income of a nation. It also helps to enhance the efficiency level of an individual through the great or optimum per capita wage and salary. What is Economic Development? Why is Economic Development Important? What is the impact of economic development? What are other benefits of economic development? Economic development has a major impact on the places where we live, work, and play.

Putting vacant or abandoned buildings and land back into productive use is a major function of economic development. This helps keep businesses located in urban areas where sewer, water, and other services are already present. Economic development retains and attracts talented people.

Communities that provide quality jobs and great places to live and work are a magnet for folks of all ages. As a result, these places have a strong future. Economic development also fosters the entrepreneurial spirit that resides in our creative and ambitious citizens. Posted by Amy Clickner on June 1, In order for any community to survive, its citizens must have employment opportunities, and its government must be able to generate revenue to provide services.

Economic development, if done effectively, works to retain and grow jobs and investment within a community. On a broad scale, anything a community does to foster and create a healthy economy can fall under the auspice of economic development. There are probably as many definitions for economic development as there are people who practice it.

From a public perspective, local economic development involves the allocation of limited resources — land, labor, capitol and entrepreneurship in a way that has a positive effect on the level of business activity, employment, income distribution patterns, and fiscal solvency. It is a process of deliberate intervention in the normal economic growth by making it easier or more attractive.