Extensive growth, in

economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ...

, 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 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 means 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 ('' ceter ...

. It is therefore often viewed as having no effect on per-capita magnitudes in the long-run.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 Production may refer to: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (goods and services) * Production as a stat ...

outward.

References

{{DEFAULTSORT:Extensive Growth Economic growth

See also

References