Extensive growth

Extensive growth, in economics, is growth in the quantity of output submitted based on a 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 planned to diminishing returns. it is for therefore often viewed as having no effect on per-capita magnitudes in the long-run.

Reliance on extensive growth can be undesirable in the long-run because it exhausts resources. To supports economic growth in the long-run, particularly on a per-capita basis, it is usefulness for an economy to grow intensively—for example, by renovation in technology or organisation, thereby shifting the economy’s production possibilities frontier outward.