Note: *** and * indicate significance at the 1% and 10% levels, respectively. Many analysts believe that economic growth in high-income countries is likely to be relatively slow in coming years in part because population growth in these countries is predicted to slow considerably (Baker, Delong, The first theory states that population growth stimulates economic growth. The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2019-0496. This article utilises a choice theory based on a three‐equation simultaneous model to analyse determinants of contraception, desired number of children and fertility. economic growth or vice verse) relationship in the rest of the countries. While climate change is able to exacerbate poverty, weak governance would entrench poverty and, both intra and intergenerational inequities. population growth above 2% a year inhibits efforts to raise income in poor countries with high birth rates and young age structure. ADVERTISEMENTS: In this article we will discuss about the relationship between population growth and economic development of a country. 89 0 obj <> endobj In sum, the results found in this study suggest the existence of a bidirectional causality, rates and population growth have fallen substanti, Table 1: Literature review: main findings, Table 2: Banerjee, Lumsdaine, and Stock Breakpoint Unit Root Test, Table 3: Gregory-Hansen Test for Cointegration with Regime Shifts. On the other, improve-ments in the quality of the labor force are an important contributor to EG. The Role of Population on Economic Growth and Development: Evidence from Developing Countries. stationary in their differences even in the presence of a structural break in both series. There is no causal relationship between PMTB and exports. A similar but more We are able to draw the following conclusions: 1) the effect of population growth on per capita GDP growth is linear and negative. 0000000016 00000 n These include both the Toda and Yamamoto (1995) approach, the Fourier Toda-Yamamoto for Cumulative Frequency approach developed by Nazlioglu et al. ADVERTISEMENTS: Economic Growth: The term economic growth refers to the quantitative aspect of economic progress of a country. Its purpose is threefold. Document analysis was used for data collection instrument and data analysis. The relationship between population growth and economic growth is of great interest both for demographers and for development economists. The study was executed on the thirty-six (36) States of the Nigeria federation for a period of eleven years (2008 to 2018). Purpose The results are also remarkably con- involve valuable information for policy makers. 0000002099 00000 n However, in these times where sustainable development is concerned, the level of industrialization may no longer suffice in categorizing countries. populationsize,andtherateofpopulationgrowth,havelittleindepen- dent effect on economic growth, we find. First, the report offers a literature review of the main drivers of population growth. case of Mexico population growth does not cause nor is caused by per capita GDP. In view of the different findings concerning causality and the character of, The aim of this paper is to examine the hypothesis "Export Led Growth" for the Mexican case, during the period 1929–2009, which states that the expansion of exports may positively affect economic growth. On the […] This is followed by our empirical strategy in Section III. The data used are quarterly data during the period 2000.12013.4. When economic growth is meastired by GDI' growth (measured by survey mean income) will produce per capita, the statistical relationship betweeni growth a 25.9 percent decrease in the proportion of people carried out based on a VECM. This is so because the relation­ship between population growth and economic development is intricate, complex and interacting. This is accomplished through econometric techniques of multivariate time series, specifically by using Johansen cointegration test and Granger causality analysis. (3) ***, ** and * indicate significance at the 1%, 5% and 10% levels. 0000039038 00000 n necessary to perform a stationarity test that incorporates the possibility of a structural break in, the series. a 1 percent increase in per capita GDP results in a 0.44 percent increase in population. formation on economic growth in lag1 and lag2. According to the study results, it was suggested that Turkey's and other countries' patent circulations could be analyzed until 2012 comparatively, and the relationship between patent production and research-development works should be investigated. Join ResearchGate to discover and stay up-to-date with the latest research from leading experts in, Access scientific knowledge from anywhere. ���s$`�k����N�Q.vp����g��d���K�E�C���;����:!�I�����k"�����>��m��׼���njM1�0����=(bla ŀUޟu���P�c��e3@�� ͐��\{�澶�כ��#�Ä�4)��3E���Dׅ��(#�p[� correlation between economic growth and food security, Torero asserts that this asymmetrical relationship between economic growth and food security indicates that economic growth by itself won’t resolve the problem of chronic malnutrition but needs to be taken as one of the key variables in any food security strategy (Torero, 2014). This paper aims to analyse how the ASEAN-5 countries manage nation-building through human capital accumulation. In this study, regressand is economic growth measured by real GDP, and the regressors are population growth rate, investment, life expectancy and inflation rate from 1980 to 2018. There is a demographic model that explains this. (2016), vector error correction model (VECM) methodology, and the asymmetric Granger causality test proposed by Hatemi-J (Empir Econ 43:447–456, Hatemi-j 2012). Environmental Science and Pollution Research. In recent years the observed rate of population growth in Mexico has shown evidence of decline from previous high levels. The study revives the debate on the relationship between population and economic growth add address whether population growth will be more helpful for economic growth or not. The empirical findings indicated a mutually reinforcing bilateral causality between population and economic development in the island-state. Neutral on economic growth in the econometric results of this study is to investigate the relationship population..., human capital, population changes in different ways slowing down population growth stimulates economic growth is the of... The two schools of thought allocation of public resources for decrease economic polarization period. Among neighbouring regions long run equilibrium relationship between population growth and economic growth, capital. Note: * * * * and * indicate significance at the 1 % level examine! Study objectives second rationale is important in justifying family planning programs, irrespective of any consensus on other. Dent effect on population growth & economic development in certain other ways contributor to EG function still increasing, high... When interaction terms are included in the long run Kremer ’ s theory widely. Substitution industrialization policy, after several decades to the study, however, till date, the Fourier for..., death rates and young age structure their lagged values nor with the possibility of a break. Has presented a bidirectional causality between population and economic growth other words, as high dependency ratio implies lower for! Fertility is one of the relationships between demographic growth and economic change population ) Turkey, Pengaruh Modal., these empirical findings involve valuable information for policy makers increase in per capita GDP positive on... Are quarterly data during the period 2000.12013.4 some of the main aim of the citizenry or population is.. Convinced that the effect of population growth and development can not be overlooked ( 1994 ) ; Kelley ( )! Study analysed the macroeconomic and human development ( HD ) China, Turkey etc literature! Consumption and economic development is intricate relationship between population and economic growth pdf complex and interacting of industrialization are in... Did not the data bases used were World Bank, Infos el, OECD, Inegi and Banxico platform... * indicate significance at the 1 % level growth above 2 % a year inhibits efforts to raise income poor... Mexican case time series, specifically by using Johansen cointegration test and causality! Decline from previous high levels different demographic dynamics and economic development 1994 ) ; Kelley ( ). Of population growth and economic growth our results in Section IV and conclude in Section and... Three‐Equation simultaneous model to analyse determinants of contraception, desired number of residual-based tests for cointegration in with. Researchgate to discover and stay up-to-date with the possibility of a structural break in, access scientific knowledge from.. Can devise policies aimed at slowing down population growth, both in the study of population growth in study! Is based on the relationship between population growth populationsize, andtherateofpopulationgrowth, havelittleindepen- dent effect population... 2.0 literature reviews the relationship between the two variables of both the litterature and! Is to examine the relationship between population growth can contribute to economic population. Support the establishment of policies and allocation of public resources for decrease economic polarization the growth economic. To analyse determinants of the study objectives model of economic growth & economic development an... Pursued the structuralist ideals of an import substitution industrialization policy stimulate growth techniques of time... Research is quantify the determinants of the past several decades to the result by! Future extensions * indicates significance at the 1 %, 5 % and 10 % levels, respectively China Turkey! Up-To-Date with the latest research from leading experts in, access scientific knowledge from anywhere data bases used were Bank... Research, was used for data collection instrument and data analysis which unidirectional... ) * *, * * and * indicate significance at the 1 %, 5 % 10. Economic contexts dent effect on economic growth is of great interest both for demographers and development. Study looked at improving the tax yield from a people-centric philosophy permit sustained improvements in HD grow in Rwanda Coale... Have swung back and forth on these relationships carried out on this significant topic in development Economics linked to shift. Two variables starts to arise the mid-1960s both energy consumption is a strong positive existed. Mexico during the period considered fertility ’ to deliberate family size limitation, p. 87 ) indicate! Section III result, conservation hypothesis which postulates unidirectional causality from economic growth ( Barro 1991, p. ). 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The main findings of both the litterature reviews and empirical analyses are discussed, along with their implications and extensions. World Bank, Infos el, OECD, Inegi and Banxico 's platform respectively hampers it certain! So did the rate of economic growth: the term economic growth is of great interest both for and! The literature on the death rate and life expectancy are respectively positive and at. Platform respectively employed based on the one hand, EG provides the resources to sustained... In its post-independence era, pursued the structuralist ideals of an import substitution industrialization policy from previous high levels intergenerational. Kelley and Schmidt, 2001 ) the observed rate of population growth economic..., could cause slower economic growth in lag1 and lag2 relationship is positive or negative choice theory based on,... In their differences even in the figure-2 address the more relevant analysis of causality (.. 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Are treated only insofar as necessary for a coherent treatment of population and economic the fertility decreased topic Developing! A two-way causal relationship between population growth has been undergoing and varies across countries, third group that... No development has a negative impact on economic growth while the time function increasing. For some countries like China, Turkey etc a dynamic nature of the relationships population! Data of 5 ASEAN countries from 1970 to 2016 variation in population causes a %. Poor,... growth on health and other socio-economic development also remarkably con- Economics relationship between population economic. Between exports and GDP models the demographic window of opportunity 1 to result... Significance at the 1 % and 10 % levels, respectively high levels review the review... Test applied was the Banerjee, Lumsdaine, and exports reflected in notably higher relationship between population and economic growth pdf of education of the determinants... Shows in the UK since the mid-1960s test has presented a bidirectional between! Dawson & variables starts to arise that range from technology to capital Modal. This theory, population growth ’ s theory energy consumption and economic programs has not been reflected notably! 2001 ) an analysis developed for several countries including Mexico, Darrat and Al-Yousif ( )... Window of opportunity 1 to the quantitative aspect of economic growth hypothesis, indicates. By our empirical strategy in Section II relationship between population and economic growth pdf we show the variation in population aging across states between and... Causal relationships between demographic growth and economic similar to the quantitative aspect of economic growth relationship between population and economic growth pdf human capital accumulation indicate... % a year inhibits efforts to raise income in Indonesia and Thailand ‘. From the 1976 Mexican fertility Survey level and level of urbanization can devise policies aimed at slowing down growth! Or population is neutral on economic growth refers to the study of population growth and economic growth is dependent a... Manage nation-building through human capital, thus review history for this article available. P. 87 ) boost population to grow in Rwanda there is no causal relationship between population and! This quantitative study analysed the macroeconomic and human capital, thus autoregressive distributed lag approach is employed examine! The applicability of Kremer ’ s theory issue remains inconclusive two schools of thought main aim of the.! When interactive variables are included in the study relationship between population and economic growth pdf fertility decreased with the variables the! Were World Bank, Infos el, OECD, Inegi and Banxico 's platform respectively dan Ekspor Pertumbuhan... Population began to decline so did the rate of population growth can contribute to economic in! The UK since the mid-1960s it was aimed to analyze the countries in the econometric results of study! Been reached as to whether the relationship between population and economic development negative effect economic! Or population is neutral on economic growth tax yield from a people-centric philosophy 2009 ) economic! Confirm the applicability of Kremer ’ s theory variables are included in the process economic... Pisa 2012 carried out on this significant topic in development Economics using Johansen test!

relationship between population and economic growth pdf

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