Bourguignon (2001, p. 112) says that countries with high population growth rates have high rates of fertility. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods included in the analysis of the analyst.. The database is updated daily, so anyone can easily find a relevant essay example. To them, the chronic food problem experienced by many poor developing economies is often attributed to rapid population. Malithus, sounded an alarm bell of rising population growth in a country. To the Greek philosophers, about 2,500 years ago, population growth was undesirable as it adversely affects economic development. Your privacy is extremely important to us. This paper discusses such factors as age structure, level of economic development, population density and rates of poverty in addition to their impacts on economy. Even in the USA, in the 1930s, was apprehended that a slowing down of the rate population growth would lead to long run secular) stagnation. Population growth acts as a barrier to economic development since the growth of population grows never in commensurate with the growth of food supply. 2, pp, 20- 34. It is not to be accepted that a slowing down of population increase might contribute substantially to our development prospects. The experiences of Korea and Taiwan tell that economic development in these countries proceeded successfully despite high population growth. Such decrease can limit not only the long run economic growth rate but also its ability to sustain its elderly population. 3, pp. With knowledge of this age structure, population growth can be more accurately predicted. 21 December. In contrast, a thickly populated country with a small population base such as Sri Lanka seems to be especially handicapped by the all size of its domestic market. The way an economy is organised is rather ‘inherently suicidal’. Brain drain can threaten the development process of poor nations by leaving them without valuable skilled labor. High economic growth is accompanied with overall high savings ratio in many developing countries. By designing their development programmes, LDCs can raise their levels of income and living standards. By the mid-1700s, Great Britain had developed into a commercial and military powerhouse; meanwhile, the population rose dramatically in Britain’s North American colonies. The theory was simple: given that there is a fixed quantity of land, population growth will eventually reduce the amount of resources that each individual can consume, ultimately … Need a custom Analytical Essay sample written from scratch by Diminishing returns may become a serious problem if population growth is rapid. The UW System economic activity in 2016-17 amounts to 7.7% of the total economic activity in the state. The size of the UW System economic impact can be reported in terms of its proportion of the entire amount of economic activity in Wisconsin. 33-63. Because of the introduction of green revolution technology in agriculture, yields have increased to such an extent that many countries, including India, have now been exporting food-grains. Sustaining economic growth and development requires that resource needs be met for future growth requirements in Xinjiang. 227-258. It increases the dependency ratio, putting a strain on … One of the first gains a developing nation can achieve is improvements in such basics as the provision of clean drinking water, improved sanitation, and public health measures such as vaccination against childhood diseases. With the two schools of thought expounding polar views regarding the impact of population growth on economic development, and the fact that the findings of the empirical studies have not led to a definite conclusion on the subject, the current study chose the Philippines as a case study to examine the long-run relationship between population and economic development. Eastwood, R & Lipton, M 2001, ‘Pro-poor Growth and Pro-growth Poverty Reduction: Meaning, Evidence, and Policy Implications’, Asian Development Review, vol. So, one must not view that population growth badly affects economic development. Their average rate of population growth is about 2.2 percent per year, but there are some countries where population growth is 3 percent or more. On the some vein, the then Prime Minister Mr. Pitt of England dec­lared in the 18th century: “A man could enrich his country by producing a number of children, even if the whole family were paupers.” All these suggest that not only there is no conflict between population growth and economic development but also an increase in population is necessary for increase in wealth and development. Barro, R 1991, ‘Economic Growth in a Cross Section of Countries’, Quarterly Journal of Economics, vol. This does not only boost economic growth but also enhances capital investments. According to Jones (2002, p. 67), industrialized nations have distinct age structures when compared to developing economies and nations. But, to show how rapid population growth retards economic development, it is necessary to mention that by economic development we mean not only increase in national income (GNP) or per capita income, but also reduction in unemployment as a result of the growth of employment opportunities and reduction in poverty and inequalities of income. For 2017, the value of all goods and services produced by Wisconsin workers was $313 billion. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Adam Smith also regarded the growth of population as the basis of wealth. 4 no. Population Growth and Economic Development in Pakistan. While some economists postulate that economic development slows down in periods of high population growth rates, others argue that high population growth boosts economic growth. However, Mlthus ‘ argument came under severe attack at the hands of Karl Marx and F. Engles. "Relationship between Population and Economic Growth." This paper discussed the ecological and economic profile of the Xinjiang Uyghur Autonomous Region of China from a past, present and future perspective and analyzed the condition of the natural resources and economic development pattern. Authors; Authors and affiliations; Amarjit Kaur ; Chapter. also argued in the same vein. Still others find that the effects vary with the level of a country’s development, the source or nature of the population growth… You are free to use it for research and reference purposes in order to write your own paper; however, you must. 4, pp. Going from bare essentials population tend to buy luxuries than they think they deserve for all the effort they put in at work. Moreover, it will provide an outlet for the products of efficient, large scale, mass- production industries. When population grows faster than GNP, the standard of living of the people does not improve. For instance, countries that experience high rates of income inequalities exhibit fertility discrepancies between poor uneducated people and rich and literate people (O’Sullivan 2003, p. 57). Economic Growth refers to the rise in the value of everything produced in the economy. Of course the size of the domestic market of country does not only depend on the number, but also on the per capita income level. The myth of over-population causing underdevelop­ment should be given up in any analysis of eco­nomic development. Mao Zedong once remarked that “A country’s greatest wealth is its people.”. As children remain engaged in productive works, the family may experience an increase in saving. Thirlwall, P 1994, Growth and Development, Basingstoke: Macmillan Press: Basingstoke. Governments therefore increase their social expenditure on poverty eradication and health at the expense of capital investments. But the evidence tells a different story. Indeed, there are high returns to investment in human capital. The two major structural variables negatively associated with rate of population increase are wealth and socialism, and the major determinants of economic growth are level of economic development and economic … In the economic front and important development as revealed by census 2001 has been the decline in the growth of workers in agricultural sector between 1991-2001. Their argument is based on the law of diminishing returns in agriculture. Bourguignon, F 2001, The Distributional Effects of Growth: Micro vs. Macro Approaches, Delta Pres: Paris. Many nations with rapid population growth have low standards … The relationship between population and economic growth has many perspectives. In recent years, as agriculture is becoming more and more unprofitable, the issue of engaging surplus labour has become a concern to the Government of India. Economic development - Economic development - Population growth: Still another lesson is the desirability of slowing down the rapid population growth that characterizes most developing countries. Plato (427-347 B.C.) Such conflicting roles suggest that the relationship between population and economic development is intricate, complex and interesting. It basically measures the total volume of goods and services produced in an economy. Population growth affects world development. Fourthly, the question of unemployment and underemployment has assumed serious proportion, particularly in LDCs, because of rapid population growth. 45-92. Indeed, this argument is empirically important in addition to theoretical reasoning. It is to be noted that labour, assisted by necessary tools and implements, was always and still is the greatest productive asset of nations. 56-189. Population growth reduces capital-labor ratio and savings. He claimed that increase in population could surpass the level of production in an economy leading to poverty (Jones 2002, p. 45). 18 no. This development, consequent upon Mathusian pressure, has been forcing many farm people to migrate to towns and urban areas in search of employment. The relation between GDP growth and GDP across the countries at a particular point of time is convex. Population Growth and Economic Development Main Question: Causation ? Conclusion. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Appearances can be deceiving essay macbeth sat essay books to read growth Population and development economic essay. The reason is that high number of working population will age out leading to a deceleration in productivity. Share Your PDF File All these may be linked to a developed rich economy addicted to growth. Economic growth in the UK Economic growth measures an increase in Real GDP (real output). We will then present two broad views on the links between population growth and economic development Œa pessimistic or fatalistic view inspired by Thomas Malthus and its modern disciples (such as Paul Ehrlich), and an optimistic view advocated by economists and demographers such as Julian Simon, Simon Kuznets and Esther Boserup Œ, and discuss the empirical evidence. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Affiliated Institution of G.G.S.IP.U, Delhi B.Com (H) Indian Economy 888301 Population and Economic Development By Dr Vandana Malviya… Start from the classical period to the recent literature on endogenous growth and development. Thirdly, but truly, rapid population growth makes prospect for development rather remote. Conclusion. In summary, population growth has a direct relationship with economic growth. Privacy Policy3. It measures all the aspects which include people in a country become wealthier, healthier, better educated, and have greater access to good quality housing. In a country where government is attempting to cut down its expenditure, aging population will lead to slower economic growth because of high rate of dependency. Under the circumstance, the capital-shallowing effect may remain inoperative. With knowledge of this age structure, population growth can be more accurately predicted. So what is sauce for a goose may not be the sauce for a gander! ☼ So, it became necessary to control population growth. professional specifically for you? A growing population, within a limited geographical area, usually puts heavy pressure on the existing factor endowments, especially natural resources of the country. Disclaimer Copyright, Share Your Knowledge Although, it is possible that the effect of population growth on economic development has been exaggerated, or that no single generalization is justified for countries differing as widely in growth rates, densities, and income levels as do today's less developed areas. Neo-Malthusians attribute all of the world’s modem problems of underdevelopment to massive population growth. 3, pp. But is this growth always a good thing? His findings supported the conclusion reached by Dawson and Tiffin (1998). Before publishing your Articles on this site, please read the following pages: 1. Secondly, population growth must involve the quality of life, and not the quantity perse. (2019) 'Relationship between Population and Economic Growth'. A growing population leads to an increase in total output. Economic Growth and Population Growth: A Puzzling Evidence. IvyPanda. It is because of ‘natural limits’ in agriculture population growth would overtake food supply output, thereby leading to famine, hunger, malnutrition, etc. Per capita measures of income should not be used to imply that the denominator, people, contributes nothing to the numerator, total income. 1st Jan 1970 Economics Reference this Disclaimer: This work has been submitted by a university student. GDP is a measure of the national income / national output and national expenditure. Write an essay about editorial youm e azadi essay in urdu for class 6 how to write a conclusion to an essay what's the sat essay out of. Conclusion: Globalisation, Economic Growth, and Labour. Such canard is made by developed countries who are to be condemned outright for destroying ecological balance. However, fertility rates are dependent on incomes, literacy and inequalities that typify an economy. At the outset, innovation and technology tend to spread slowly owing low contact between social institutions, individuals and economic institutions (Meier 1995, p. 34). In such countries as China and India, the high rate of population growth has complemented economic growth rate (Drèze & Sen 1995, p. 38). You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Download this complete Project material titled; The Effect Of Population Growth On The Socio-Economic Development with abstract, chapter 1-5, references and questionnaire.Preview chapter one below. Under certain condi-tions moderate population growth can be benefi- cial. However, ‘prosperity in an economy is no… Environmental issues and … Research highlights We examine global food production development until 2030 with a partial equilibrium model of agriculture and forestry. Meier, G 1995, Leading Issues in Economic Development, Oxford University Press: New York. This in turn leads to increased productivity and production of goods and services across entire economic spectrum. This is when the economy becomes more productive, when they are enjoying prosperity. As India is growing and diversifying its economy, more workers find workers in the non-agricultural sector, helping it to grow. In particular, Solow claims that high population growth in a steady state is likely to reduce disposable income and income per capital. Population growth plays a conflicting role in the development process of a country. There are 700 million Indians under the age of 35 and the demographics look good for Indian growth in the next twenty years at least. The rationale is that population growth will exert pressure on already scarce economic resources. In this way, children themselves contribute to household and saving. Further, they argue that there is no population bomb in these countries. Malthus was among classical economists who attempted to explain the relationship. According to Kuznets, the identifying characteristic of "modern economic growth" is a. expansion of heavy industry. Population growth helps the process of development in the following ways: First, an increasing population means an increase in the number of working population who can function as active participants in the process of economic growth and development. Some schools of thoughts believe that there is a positive correlation between population and economic growth. TOS4. Wages are higher, so consumption tends to be higher as well. The moot point is that population growth may be either favourable or unfavourable to economic development, depending on where, when, and how it takes place. The view opposing the population growth started with the Malthusian Theory: Population growth is deteriorating the economic development by hampering economic growth and considers it is a real problem. On the one hand, age structure in industrialized nations is major cause for skewed relationship between population growth and economy (Aliber 2001, p. 36). You can view samples of our professional work here. 3, pp. Besides, governments of such societies face constraints in provision of public goods such as infrastructure and electricity due to minimal and expensive interaction with the rest of the world (Solow 1956, p. 67). An increase in population will imply that expansive agricultural activities and extraction of resources will increase at the expense of environment. Thirdly, an arithmetic increase in population permits in reaping economies of scale in production, greater division of labour, extension of the market, etc. Neo-Malthusian analysis that high and increasing population density hinders economic development and results in poverty has been demonstrated to be false. Various economic models have attempted to establish the relationship between different demographic dynamics and economic growth (Barro 1991, p. 87). No one should exaggerate either the beneficial or the unfavourable effects of population growth on economic development. It refers to the number of people living within one square kilometer. 19: 1-37. 17 no. In the long run, ARDL results show that the population growth has a positive and statistically significant impact on economic development. The global population has grown from 1 billion in 1800 to 7 billion in 2012. Besides, the paper utilizes various theoretical frameworks that establish the correlation of population dynamics and economic growth. Unfortunately, the present global world is highly unequal. Population growth leads to economic growth in industrialized nations that have high population density. The vast secular boom in the post-industrial revolution England had been largely induced by the unparalleled rise in population’. Abstract: The connection between population growth and economic development has been a much debated topic ever since the world population passed the two billion mark. This implies that population growth in income unequal countries is not only detrimental for the economy but it also threatens social stability. Over time, this growth will eventually lead to starvation and thirst, he said, leading to his … The US economist Kenneth Boulding made the following statement: “Anyone who believes that exponential growth can go on forever in a finite world is either a madman or an economist.”. Since economic growth depends on rate of saving and investment … Before the industrial revolution, the world's population stood at around 1 billion, not more. However, economic growth stalls in poor and unequal countries due to high rates of poverty and sparse population. The rationale is that population grows in geometrical way while productivity improves in an arithmetic rate. Kohler, P & Kohler, I 2002, ‘Fertility Decline in Russia in the Early and Mid-1990s: The Role of Economic Uncertainty and Labor Market Crises’, European Journal of Population, vol. Carbon dioxide emission is at its highest level. It is controversial. the growth rate of increase in total output, must be greater than the population growth rate. While neo-classical theorists classify states and nations in order to understand interplay between demographic dynamics and economy, other models use age structure of a nation to predict the effects of population growth/decrease in an economy. Retrieved from https://ivypanda.com/essays/relationship-between-population-and-economic-growth/. Growth increases with GDP reaches its maximum and then begins to decline. To the Greek philosophers, about 2,500 years ago, population growth was undesirable as it adversely affects economic development. This is IvyPanda's free database of academic paper samples. IvyPanda. 60 no 1, pp. It helps economic development and it retards economic development. This will not only lead to high rate of dependency but also high cost of caring for the aged populace (Weil 2009, p. 87). Hunger and famine, according to A. Sen, is due to ‘entitlement failure’ and not the food availabilities as such. Secondly, based on the Indian experience, Ansle Coale and E. M. Hoover drew attention to the likely adverse effects of population growth on savings and capital formation through the following effects: the age-dependency effect, the capital- swallowing effect, and the investment diversion effect. In fact rapid population growth has been obstructing economic growth in developing countries like India where since 1951 population has been growing at a relatively high rate. Finally, neo-Malthusians argue that excessive population growth and massive poverty in LDCs have greatly damaged the ecological balance by deforestation and land degradation. First, all problems of levels of living, inequality and poverty are not to be necessarily linked with high population growth. 36 no. Population growth adversely affects their economic development in the following ways, first faster population growth makes the choice more scarce between higher consumption now and the investment needed to bring higher consumption in the future. December 21, 2019. https://ivypanda.com/essays/relationship-between-population-and-economic-growth/. Format: PDF and MS Word (DOC) pages = 65 ₦ 3,000 To this end, high population growth rate in countries that have alarming levels of income inequalities tends to increase levels of poverty in the population. 27 no. Different Views on the Role of Population Growth: Relationship between Population Growth and Economic Development. Business activity will be spurred as a consequence. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Gonzalo, J 1994, ‘Five Alternative Methods of Estimating Long-Run Equilibrium Relationships’, Journal of Econometrics, vol. 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