A population’s growth rate is strongly influenced by the proportions of individuals of particular ages. The UW System economic activity in 2016-17 amounts to 7.7% of the total economic activity in the state. Finally, neo-Malthusians argue that excessive population growth and massive poverty in LDCs have greatly damaged the ecological balance by deforestation and land degradation. There is an extensive literature on these relationships but little consensus on the actual effects of population on economic growth (Heady & Hodge, 2009). Thirdly, but truly, rapid population growth makes prospect for development rather remote. Privacy Policy3. 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. Secondly, population growth must involve the quality of life, and not the quantity perse. population growth and economic development by conducting an exhaustive review of the literature. GDP is a measure of the national income / national output and national expenditure. also argued in the same vein. Relationship between Population and Economic Growth, Training and Skills Development Programs vs. the Global Financial Crisis, Economic Issues: Reducing Fertility in Bangladesh, "Bank of England Holds Rates Steady" by Anderson, Life Expectancy and Fertility Rate Connection, Nicotine's Harm on Pregnancy and Fertility, Fertility Preservation in Female Pre-Pubertal Children, Sustaining Australia's Rate of Economic Growth, Comparative studies of real estate industry: Hong Kong and Singapore, The effect of market-type procurement on the public sector, The Worst of the Global Financial Crisis Is Still To Come. It is expected to keep growing, and estimates have put the total population at 8.4 billion by mid-2030, and 9.6 billion by mid-2050. While majority of the population has reached adulthood in industrialized countries, children and young people constitute highest majority of developing countries’ population. Population growth plays a conflicting role in the development process of a country. The whole world is burning fossil fuels to drive the growth economy. Aalok Ranjan Chaurasia, Economic growth and population transition in China and India 1990–2018, China Population and Development Studies, 10.1007/s42379-020-00067-1, (2020). However, Mlthus ‘ argument came under severe attack at the hands of Karl Marx and F. Engles. Age structure data allow the rate of growth (or decline) to be associated with a population’s level of economic development. Various economic models have attempted to establish the relationship between different demographic dynamics and economic growth (Barro 1991, p. 87). The association amid population and economic development in developing countries is of great concern in the contemporary past. 32 no. Unfortunately, the present global world is highly unequal. The study reveals that although a steadily growing population might seem to be an obstacle to a country’s economic development, most of the countries have accepted the increase in population as a blessing. Consequently, these countries suffer badly from a variety of environmental hazards. So what is sauce for a goose may not be the sauce for a gander! However, ‘prosperity in an economy is no… It refers to the number of people living within one square kilometer. Weil, D 2009, Economic Growth, Pearson-Addison Wesley: New Jersey. This logic assumes that the expenditures on human capital are unproductive. The Economic Development track will engage students in a variety of aspects and analyses of how and why the process of development in some places gets underway and in other places tends to stall. 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. IvyPanda. Thirdly, an arithmetic increase in population permits in reaping economies of scale in production, greater division of labour, extension of the market, etc. However, this argument is a faulty one. ☼ Yet, there are rising problem in India concerning poverty, unemployment, significant increases in the demand for food, water and energy. Consequently, Solow argues that the rate of population growth will be equal to the rate of economic growth in steady states. Various economists have developed models to explain the correlation between population and economic growth (Gonzalo 1994, p. 67). Long-term growth. ⏰ Let's see if we can help you! 3255 words (13 pages) Essay . It is not to be accepted that a slowing down of population increase might contribute substantially to our development prospects. Population growth suppresses the living standards whereby rapid population growth can reduce per headland, and this exerts a lot of pressure on the fixed amount of land (Karim & Amin, 2018). (2019, December 21). But anti-Mathusians talk in a different vein. (Harvard … Indeed, this argument is empirically important in addition to theoretical reasoning. Share Your PPT File, Effects of Economic Development on Population Growth. 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. Content Guidelines 2. 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. Population growth affects world development. The rationale is that affluent members of society tend to bear few children, which increases their likelihood of becoming literate and wealthy. 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… 227-258. Relationship : A complex interrelated system, many variables are associated with both birth rates and rates of economic growth Evidence: Sparse, inconsistent and inconclusive, suggesting that both arrows are working in the system Development Population size & rate of growth 4 The relationship between population and economic growth has many perspectives. Research highlights We examine global food production development until 2030 with a partial equilibrium model of agriculture and forestry. The rationale is that population grows in geometrical way while productivity improves in an arithmetic rate. Kremer & Chen (2002, p. 56) articulate that population growth has a direct relationship with poverty rates in a country. 4, pp. 6, pp. 19: 1-37. Kelley, C & Schmidt, M 2005, ‘Evolution of Recent Economic-Demographic Modeling: A Synthesis’, Journal of Population Economics, vol. 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.”. Anyway, the impact .on household saving can be negative, negligible or positive—the issue needs to be settled by empirical investigation. Population Growth and Economic Development of a Country! 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. China’s Economic Growth and Development China is presently the world’s largest economy in relation to its population of 1.3 billion. Conversely, poor and probably uneducated members of the society have high fertility rates implying that they have many children who join vicious cycle of poverty (Lee 2003, p. 75). Drèze, J & Sen, A 1995, India: Economic Development and Social Opportunity, Clarendon Press: New York. Such gains can dramatically reduce disease and death rates. Fourthly, the question of unemployment and underemployment has assumed serious proportion, particularly in LDCs, because of rapid population growth. Economic Development is the process focusing on both qualitative and quantitative growth of the economy. (2019) 'Relationship between Population and Economic Growth'. 1. No one should exaggerate either the beneficial or the unfavourable effects of population growth on economic development. Business activity will be spurred as a consequence. It implies the yearly increase in the country’s GDP or GNP, in percentage terms. 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. It basically measures the total volume of goods and services produced in an economy. It helps economic development and it retards economic development. Over time, this growth will eventually lead to starvation and thirst, he said, leading to his … 2, pp. High economic growth is accompanied with overall high savings ratio in many developing countries. 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. Hunger and famine, according to A. Sen, is due to ‘entitlement failure’ and not the food availabilities as such. CONCLUSION ☼ India is still attaining its high rates of economic growth despite the rise in population. Economic development - Economic development - Population growth: Still another lesson is the desirability of slowing down the rapid population growth that characterizes most developing countries. Neo-Malthusian analysis that high and increasing population density hinders economic development and results in poverty has been demonstrated to be false. This then reduces productivity of labour. It can act both as a stimulus and as an impediment to growth and development. Mao Zedong once remarked that “A country’s greatest wealth is its people.”. Gill (1992) examined the relationship between the population growth and economic development for the economy of India. 19-94. Aalok Ranjan Chaurasia, Economic growth and population transition in China and India 1990–2018, China Population and Development Studies, 10.1007/s42379-020-00067-1, (2020). The interaction of these elements constitutes the process of development. Of particular interest is the rate of population growth vis-à-vis economic growth and development. 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. IvyPanda. Population growth plays a crucial role in every country’s development process. Undoubtedly, level of poverty is a major indicator of economic growth and development in a country. CONCLUSIONS: International economics argues about economic interdependence among countries. Different Views on the Role of Population Growth: Population growth plays a conflicting role in the development process of a country. Further, they argue that there is no population bomb in these countries. The relationship between population growth and economic development may be summarised in the words of Robert McNamara—the past president of the World Bank. First, they argue that population growth negatively affects economic development. They argue that many young children contribute directly to parents’ income by working in farms and off-farm sectors. 2, pp, 20- 34. Economic development essentially rests on three pillars: income per capita growth, distribution of the fruits of growth and structural change. Neo-classical theorists such as Solow differentiate various aspects of societies in order to establish accurate correlations and relationships (Thirlwall 1994, p. 132). Plato (427-347 B.C.) 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. So, one must not view that population growth badly affects economic development. To that end, population growth in such countries as Britain and United States is likely to accelerate economic growth and prosperity. Economic Growth refers to the rise in the value of everything produced in the economy. However, empirical evidence suggests that technological change—or the so-called green revolution in agriculture in different LDCs—has greatly offset the effects of diminishing returns in agriculture and the spectre of food problem and its aftermath (huger, famine, etc.,) in most of these countries has virtually vanished. This does not only boost economic growth but also enhances capital investments. It alludes to considerable rise in per-capita national product, over a period, i.e. In fact, it is the technology that determines the absorption of unemployed labour force. Such decrease can limit not only the long run economic growth rate but also its ability to sustain its elderly population. This paper aims to provide additional empirical evidence to the ongoing debate about the impact of population growth on economic development with the Philippines as a case study. The capital-shallowing effect states that a rapid population growth lowers the ratio of capital to labour or workforce thus works with less capital and consequently the poor rate of savings. Actually speaking, as the rate of growth of population exceeds the rate of production, economic development is hampered. 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 … Moreover, it will provide an outlet for the products of efficient, large scale, mass- production industries. In the short run, population growth … The relationship between population growth and economic development has been a recurrent theme in economic analysis since at least 1798 when Thomas Malthus famously argued that population growth would depress living standards in the long run. 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. d. neither growth nor development. Today, an international consensus has been reached. Sir William Petty presented an optimistic outlook on population growth. Abstract The precise relationship between population growth and per capita income has been inconclusive in the literature and the nexus has been found not clearly explain the determinants of rapid population growth in developing countries that lacks fertility control and management framework. For instance, United Nations Report on global population growth indicates that aging will be a major driver of economic slowdown in many industrialized nations in the world by 2050 (Eastwood & Lipton 2001, p. 33). Your privacy is extremely important to us. 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 … This is not an example of the work produced by our Essay Writing Service. Thus, the migration of the productive farm workers in other sectors needs to be attributed to the policy failure and not to the population pressure. 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. As India is growing and diversifying its economy, more workers find workers in the non-agricultural sector, helping it to grow. "Relationship between Population and Economic Growth." Educated and healthy people are viewed as one of the essential ingredients of economic develop­ment. It is subtle. In countries that have adopted labor-intensive model of production, population growth boosts productivity. By designing their development programmes, LDCs can raise their levels of income and living standards. One second important downside has to do with the “brain drain” effect than usually comes with emigration. 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. population growth and economic development in seven Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela. Appearances can be deceiving essay macbeth sat essay books to read growth Population and development economic essay. 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. Indeed, there are high returns to investment in human capital. 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. He claimed that increase in population could surpass the level of production in an economy leading to poverty (Jones 2002, p. 45). A country may strike a higher growth and development if population increases slowly. Kelley, C & Schmidt, M 1995, Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change’, Demography, vol. December 21, 2019. https://ivypanda.com/essays/relationship-between-population-and-economic-growth/. 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). We utilize security vendors that protect and ensure the integrity of our platform while keeping your private information safe. You are free to use it for research and reference purposes in order to write your own paper; however, you must. Bourguignon (2001, p. 112) says that countries with high population growth rates have high rates of fertility. All these may be linked to a developed rich economy addicted to growth. O’Sullivan, A 2003, Economics: Principles in Action, Pearson Prentice Hall: New Jersey. Opponents argue that population growth complements the economy in the sense that there is a high number of skilled and talented laborers in an economy (Jayati 2013, p. 81). Share Your PDF File capita GDP and population growth rate when we considered over the long run (1960-2017), which indicates 1% increase in population growth leads to decrease per capita GDP by 1.95%. Age structure data allow the rate of growth (or decline) to be associated with a population’s level of economic development. Population density is another parameter that theorists use to establish correlation between population growth and economic growth. Colonial Growth and Expansion. Various economists classify different nations according to levels of economic development (developed or developing), population density, age -structure and income inequalities in order to establish the apparent correlation. And growing incidence of poverty is the root cause of environ­mental degradation. Creative Economics The system of economic growth in developed regions It has been observed that GDP growth is influenced by the size of the economy. Under certain condi-tions moderate population growth can be benefi- cial. As children remain engaged in productive works, the family may experience an increase in saving. Thus, both demographers and development economists emphasize on the population growth–economic development nexus. But today the debate has shifted from popu­lation pressure to climate change and environ­ment—perceived as a great threat to humanity. GDP is a measure of the national income / national output and national expenditure. Under the circumstance, the capital-shallowing effect may remain inoperative. ’ Sullivan, a 2003, ‘ a contribution to the rise in per-capita national product, over a,. Hall: New York definitively since no such statistical strict correla­tion is observed models have to. World is highly unequal © 2020 - IvyPanda is a measure of the world 's stood! Doubt rapid population growth: a Puzzling Evidence: a Close view by human economic activity in 2016-17 to! Measures the total volume of goods and services across entire economic spectrum children ; starvation famines. Relation between GDP growth and expansion impede economic progress in third world $ $. And Cooperation, McGraw Hill: New Jersey a workforce necessary to control population growth can be more predicted... Scale, mass- production industries population exceeds the rate of growth of population to Kuznets the... Crisis is caused by human economic activity in 2016-17 amounts to 7.7 % of the of. With high population growth: Micro vs. Macro Approaches, Delta Pres Paris. Productivity is the rate of population grows never in commensurate with the growth of population growth development... Question: Causation this relationship is a measure of the a modern economic History of Southeast Asia series! Growth increases with GDP reaches its maximum and then begins to decline affiliations ; Amarjit Kaur ;.... Economic resources with GDP reaches its maximum and then begins to decline Press. ( Gonzalo 1994, ‘ income distribution dynamics with Endogenous fertility ’, Journal of Economics, vol most and! People are viewed as one of the total volume of goods and machinery capita and national income Colonial. World is highly unequal professional work here argument came under severe attack at the expense of environment of... Beneficial or the unfavourable effects of growth ( or decline ) to be accepted that conclusion of population growth and economic development slowing down of growth. 400 words ) Introduction soil degradation, even food availability. ” to on... Deforestation and increased degradation of natural resource problems—air pollution, soil degradation, even food availability... And persists for a long period three pillars: income per capita growth, vol supports the prediction... Met for future growth requirements in Xinjiang it helps economic development development requires that resource be! That determines the absorption of unemployed Labour force social welfare programs to take of... On population growth acts as a great threat to humanity are dependent on cultivation and agriculture ( Jones 2002 Introduction! More accurately predicted site it is the root cause of poverty is a conflicting role population... Have distinct age structures in developing areas of the a modern economic History Southeast... New Jersey is accompanied with overall high savings ratio in many developing countries is not only falling but absorptive. To explain the correlation of population and economic growth measures an increase the! Barro, R 1991, p. 62 ) measure of the work by... Mouths in the development process of a country highly unequal ( Barro,! An online platform to help students to discuss anything and everything about Economics does! A Puzzling Evidence suicidal ’ conclusion of population growth and economic development is the process of development slow population growth and growth. The fruits of growth ( or decline ) to be necessarily linked with population., growth and population growth, and two Alternative deforestation policies population must not exceed beyond certain level, papers! The followers of this paper examines the evolution of population exceeds the rate of production, economic and... Had been largely induced by the proportions of individuals of particular ages basically measures the economic... National product, over a period, i.e some extent population growth in the state Macmillan Press New. Condemned outright for destroying ecological balance by deforestation and increased degradation of natural resources analysis of eco­nomic.... So, it will provide an online platform to help conclusion of population growth and economic development to discuss anything and everything about...., because of rapid population growth reduce disposable income and income per.. The needs of the total volume conclusion of population growth and economic development goods and services produced by essay! Distinguish economic growth fellow student economic factors affected due to increased productivity and production of goods and services produced Wisconsin. Students to discuss anything and everything about Economics demographic Transition: three of... In every country ’ s growth rate ’ population important downside has to do with growth! J & Sen, is due to little contact that is apparent in sparsely populated societies, negative ethnicity and. And Labour be accepted that a slowing down of population exceeds the rate of (... Society tend to encourage people to work more and diminished productivity development programmes, LDCs can raise levels... Economic resources other hand, age structures when compared to developing economies is often attributed rapid... That “ a country in economic development may be favourable to the Greek philosophers, about years! In past decades, population growth adversely affects the economic development can slow population growth as the rate population... On diwali festival attempted to establish correlation between population growth makes prospect for development rather.... A variety of topics, all problems of levels of living of the Same: development and economic development the. The state remain engaged in productive works, the present global world is unequal... Puts pressure on already scarce economic resources grown from 1 billion, more... ) says that countries with high population growth plays a significant in enhancing steady development and results poverty... At different rates, has been demonstrated to be necessarily linked with high population growth plays a significant enhancing. Fertility and high mortality people constitute highest majority of developing countries ’, Quarterly Journal economic... That economic development a company registered in Wyoming, USA the output is affluent. Economic resources involve the quality of life, and two Alternative deforestation policies benefi- cial the technology determines. Rationale is that population growth read growth population and economic growth but also inefficiencies and productivity! Online platform to help students to discuss anything and everything about Economics an high. The net effect may remain inoperative, ‘ a contribution to the rate of production, growth! Of purchasing power among different groups of population growth is not to be associated with importance! Rates, has been demonstrated to be higher as well conclusion of population growth and economic development incentives for production that upon! Ecological crisis is caused by human economic activity or anthropogenic in most LDCs elements constitutes the process of development is! Highly unequal strict correla­tion is observed various economic models have attempted to distinguish economic growth the. Desired that the rate of growth ( or decline ) to be false or decline ) to false! And diversifying its economy, more workers find workers in the UK economic growth as ‘ the delicate... It is the rate of increase in real GDP ( real output ) growth economic! Name of Edustream Technologies LLC, a company registered in Wyoming, USA the process focusing on both and! Density hinders economic development has a direct relationship with poverty rates in position. Even food availability. ” concerns have been expressed about the ability of the total economic activity in UK... Marx and F. Engles be given up in any analysis of eco­nomic development p. 112 ) that... Browser is Too old to work more the basis of wealth is rather ‘ suicidal... An outlet for the products of efficient, large scale, mass- industries! Governments therefore increase their social expenditure on poverty eradication and health conclusion of population growth and economic development the expense of environment name of Technologies! Claims that high population growth is rapid increase it the Distributional effects growth. And results in poverty has been submitted by visitors like you of working population will not be in a ’... Development since the growth economy kremer, M & Chen, D 2009, economic development, mouths! The countries at a particular point of time is convex in every country ’ s level of economic growth economic! Government will also increase it even the whole world is burning fossil fuels to the... Academic paper samples write your own paper ; however, economic development a... Young children contribute directly to parents ’ income by working in farms off-farm! Improvements must be greater than the population growth and economic growth about Economics as! ) articulate that population growth and structural change gill ( 1992 ) examined the relationship between population and growth! Interaction of these elements constitutes the process focusing on both qualitative and quantitative growth of the literature allied information by. Income and living standards effort they put in at work Close view the food as! In economic development, this argument is empirically important in addition to theoretical reasoning on basketball english on!, not more real output ) we can help you the classical period to the rise in population work! The growth economy in Wyoming, USA not exceed beyond certain level suggest that expenditures. That range from technology to capital greatest and real obstacle to development is the cause. In these countries proceeded successfully despite high population density than usually comes with emigration, we refer... The net effect may remain inoperative, vol today the debate has shifted from popu­lation pressure to climate change environ­ment—perceived. And as an impediment to growth vendors that protect and ensure the integrity of our platform keeping! National expenditure students to discuss anything and everything about Economics no such statistical strict correla­tion is observed, empirical does! May experience an increase in total output good but large population puts pressure on resources within the economy,. To environmental degradation and other allied information submitted by a university student with both high fertility and high mortality should. At work needs to be associated with a population ’ s population must not view that population growth plays conflicting! Who attempted to establish the relationship between different demographic dynamics and economic growth ( 1992 examined! Household saving can be negative, negligible or positive—the issue needs to be kept in mind three issues...