Extensive growth, in

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...

, 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 Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...

growth caused only by increases in population or territory would be extensive growth. Thus, extensive growth is likely to be subject to

diminishing returns In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal ( ceteris pari ...

. It is therefore often viewed as having no effect on per-capita magnitudes in the

long-run In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints a ...

.The Transformation of the State Extensive Growth Model in Cuba's Sugarcane Agriculture
, Lázaro Peña Castellanos and José Alvarez. 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.

References

{{DEFAULTSORT:Extensive Growth Economic growth

See also

References