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What causes economic growth? Why do some countries grow faster than others? In contrast, why do some countries experience periods of negative economic growth and declining per capita incomes? Does this indicate that there should be limits to economic growth and population growth due to resource constraints and environmental thresholds? Economic growth, reflected in increases in national output per capita, makes possible an improved material standard of living; but sustainable development goes further in catering for the needs of future generations as well as the current one. Its focus is on the utilization of natural resources, the state of the environment, and intergenerational equity. This interdisciplinary textbook uses a blend of formal models, empirical evidence, history and statistics to provide a coherent and comprehensive treatment of economic growth and sustainable development.