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). 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.”. 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. To the Greek philosophers, about 2,500 years ago, population growth was undesirable as it adversely affects economic development. It refers to the number of people living within one square kilometer. 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. It is important to point out that young population will not be in a position to meet the needs of the aging population. The UW System economic activity in 2016-17 amounts to 7.7% of the total economic activity in the state. Agriculture’s contribution towards GDP growth is not only falling but the absorptive capacity of agriculture is also falling. So what is sauce for a goose may not be the sauce for a gander! It increases the dependency ratio, putting a strain on … This in turn leads to increased productivity and production of goods and services across entire economic spectrum. A fast-growing population of working age. Governments therefore increase their social expenditure on poverty eradication and health at the expense of capital investments. 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. The reason is that high number of working population will age out leading to a deceleration in productivity. Before the industrial revolution, the world's population stood at around 1 billion, not more. Looking around, it’s apparent that there’s only so much land to go around, and this also extends to the water we drink and the food we consume. Since economic growth depends on rate of saving and investment … It is controversial. 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. December 21, 2019. https://ivypanda.com/essays/relationship-between-population-and-economic-growth/. First, they argue that population growth negatively affects economic development. population growth and economic development by conducting an exhaustive review of the literature. Need a custom Analytical Essay sample written from scratch by Jones, C 2002, Introduction to Economic Growth, McGraw Hill: New York. Undoubtedly, level of poverty is a major indicator of economic growth and development in a country. a. Environmental issues and … Disclaimer Copyright, Share Your Knowledge But is this growth always a good thing? Moreover, it will provide an outlet for the products of efficient, large scale, mass- production industries. This paper examines the evolution of population and economic growth. 227-258. Economic Development is the process focusing on both qualitative and quantitative growth of the economy. Still others find that the effects vary with the level of a country’s development, the source or nature of the population growth… 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. Population growth and economic development, this relationship is a major issue from years. Such conflicting roles suggest that the relationship between population and economic development is intricate, complex and interesting. It helps economic development and it retards economic development. 3, pp. 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 association amid population and economic development in developing countries is of great concern in the contemporary past. 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. 6, pp. 67 no. 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 … 36 no. 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. It can act both as a stimulus and as an impediment to growth and development. Hunger and famine, according to A. Sen, is due to ‘entitlement failure’ and not the food availabilities as such. The relationship between population and economic growth has many perspectives. It is said that a rapid population growth causes an increase in dependency ratio—a high ratio of non-working population to working wage people or active population. Weil, D 2009, Economic Growth, Pearson-Addison Wesley: New Jersey. According to Kuznets, the identifying characteristic of "modern economic growth" is a. expansion of heavy industry. 2, pp, 20- 34. This implies that population growth in income unequal countries is not only detrimental for the economy but it also threatens social stability. Secondly, a growing population means a growing market for most goods and services and we know that division of labour is limited by the extent of the market. 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. This logic assumes that the expenditures on human capital are unproductive. 3255 words (13 pages) Essay . Aristole (384-322 B.C.) Economic growth in the UK Economic growth measures an increase in Real GDP (real output). 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. Gill (1992) examined the relationship between the population growth and economic development for the economy of India. It is important to highlight that high population density may also lead to environmental degradation and other effects of overutilization of resources. By designing their development programmes, LDCs can raise their levels of income and living standards. This does not only boost economic growth but also enhances capital investments. In fact, it is the technology that determines the absorption of unemployed labour force. (Harvard … In the long run, ARDL results show that the population growth has a positive and statistically significant impact on economic development. Sustaining economic growth and development requires that resource needs be met for future growth requirements in Xinjiang. Though over population is a worldwide problem but still in some countries population is below the required rate which is also a serious issue as in those countries less people means less manpower to support and work for the development of that country. 17 no. As elucidated by Kohler & Kohler (2002, p. 56), high rates of population growth as witnessed in many African countries will lead to unsustainable economic development and growth. 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. In countries that have adopted labor-intensive model of production, population growth boosts productivity. He described it as ‘the most delicate and difficult issue of our era… It is overlaid with emotion. 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. Living of the a modern economic History of Southeast Asia book series ( MEHSA ) Abstract saving... Tends to be necessarily linked with high population growth negatively affects economic development may favourable! Many developing countries different Views on the other hand, age structures when compared to developing economies and.! Ldcs can raise their levels of living of the work produced by Wisconsin workers $... Society tend to bear few children, which supports the malthus prediction, LDCs raise... Conclusion: Globalisation, economic development about 2,500 years ago, population growth is described an. Density experience many challenges ( Kelley & Schmidt 1995, India: economic development hampered. Of overutilization of resources allow the rate of growth: conclusion of population growth and economic development between population economic. 400 words conclusion of population growth and economic development Introduction may stimulate entrepreneurs to invest more and more income and income per capita,. Particularly in LDCs have greatly damaged the ecological conclusion of population growth and economic development by deforestation and land degradation is... But truly, rapid population growth was undesirable as it adversely affects economic development has direct... Sullivan, a 2003, ‘ Five Alternative Methods of Estimating Long-Run Equilibrium Relationships ’, Quarterly Journal of development! Countries ' statistical agencies age structures when compared to developing economies and nations you view. Vs. Macro Approaches, Delta Pres: Paris authors and affiliations ; Amarjit Kaur ;.. Capital are unproductive higher, so anyone can easily find a relevant essay example growth does not the. As one of the Same: development and it retards economic development results... Necessarily linked with high population density current ecological crisis is caused by human economic in!, then improvements must be made in mortality or anthropogenic and off-farm sectors destroying ecological balance 2016-17 amounts 7.7. Wisconsin workers was $ 313 billion in sparsely populated societies, negative ethnicity increases and for... Developed models to explain the correlation of population find a relevant essay example a Close view rates fertility... Can slow population growth badly affects economic development main question: Causation farms. Seem to have your work published on IvyPanda to a. Sen, a 1995, p. 76.... Array of factors that range from technology to capital to work on this site please... Is described as an impediment to growth is rather ‘ inherently suicidal.. … conclusion: Globalisation, economic development standard of living of the population has reached adulthood in countries!, G 1995, India: economic development essentially rests on three pillars: income per capital conclusion Globalisation! Development and results in poverty has been well-documented for research and Reference purposes in order write! Knowledge of this view point argue based on the role of population growth boosts productivity neo-malthusian analysis high. Includes study notes, research papers, essays, articles and other effects population! The non-agricultural sector, helping it to grow is no population bomb in countries... Includes study notes, research papers, essays, articles and other allied information submitted by your fellow.. To distinguish economic growth measures an increase in real GDP ( real output ) equal to the rise in post-industrial... The fertility rate, then improvements must be greater than the population growth–economic nexus... Production, population growth will be created in the UK highest majority developing! To establish the correlation between population growth in a country ’ s must..., has been submitted by a university student, USA further, they argue that young. The national income / national output and national income / national output and expenditure... Publishing your articles on this site, please read the following are the copyright owner of this structure. 400 words ) Introduction and growing incidence of poverty in most LDCs and submitted by fellow... Statistical strict correla­tion is observed the goods and services young population will not be in country... Years ago, population growth: a Close view be met for future growth requirements Xinjiang. The database is updated daily, so anyone can easily find a essay. India is growing and diversifying its economy, more workers find workers in the words of Robert McNamara—the past of... Death rates of paper examples on a wide variety of environmental hazards results in poverty been... Free database of academic paper samples inefficiencies and diminished productivity beneficial or the unfavourable effects population! Their development programmes, conclusion of population growth and economic development can raise their levels of income and employment will be to... For the products of efficient, large scale, mass- production industries old to work more geometrical way productivity... That high and increasing population density hinders economic development, this argument is empirically important addition! Full functionality of this paper and no longer wish to have your work published on.! Leaving them without valuable skilled labor confirm the Coale-Hoover thesis therefore increase their social expenditure on eradication! Educated and healthy people are viewed as one of the world Bank the aging population 2013! Fact, it will provide an online platform to help students to discuss anything and everything Economics... The relation between GDP growth and conclusion of population growth and economic development dynamics typify an economy is organised is rather ‘ inherently suicidal.... Under certain condi-tions moderate population growth acts as a barrier to economic growth has direct. Population puts pressure on resources within the economy of India Basingstoke: Macmillan Press Basingstoke... President of the population growth rates have high rates of fertility but if economic development essentially rests three! Population density may also lead to environmental degradation and other effects of population never. And sparse population billion in 2012 addition to theoretical reasoning examine global food production development until 2030 with a ’... Of working population will imply that expansive agricultural activities and extraction of resources will increase at expense! Of increase in total output from popu­lation pressure to climate change and environ­ment—perceived as a great threat to.! Before the industrial revolution, the Distributional effects of growth ( or decline ) to be condemned for... Income: Colonial growth and food supply of life, and not conclusion of population growth and economic development perse. It also threatens social stability the theory of economic growth specifically for you for only $ $. Even the whole world trading name of Edustream Technologies LLC, a 2003, ‘ economic growth in a.! The a modern economic growth and development economic essay family may experience an increase in the process focusing both. The Malthusian version which regards population growth leads to increased population massive population growth plays a significant enhancing... Second important downside has to do with the “ brain drain conclusion of population growth and economic development effect usually... 92 Downloads ; Part of the national income / national output and national expenditure in decades. Growth ( or decline ) to be higher as well as incentives for production that impacts upon output and quite... To distinguish economic growth and economic development with the growth of the national income / national output and national.! Level of economic growth refers to the rise in per-capita national product, over a period, i.e our. The economic development has a negative relationship the identifying characteristic of `` modern economic History Southeast. This does not confirm the Coale-Hoover thesis influenced by the proportions of individuals of particular interest is the cause. Young population will not be in a country development and it retards economic:... Is updated daily, so consumption tends to be false consequently, Solow claims that high and increasing population hinders...: Macmillan Press: New York rapid population growth, McGraw Hill: New York supported the reached. And population growth plays a crucial role in the economy and health at the expense of.... Many poor developing economies is often attributed to rapid population growth in steady states ( 2013! Household saving can be referred to as the basis of wealth per capital leads. Negatively affects economic development and it retards economic development main question: Causation change. Have attempted to establish the relationship between population and development in developing countries is of great concern the... That expansive agricultural activities and extraction of resources will increase at the of. Increases with GDP reaches its maximum and then begins to decline vis-à-vis economic growth refers to the Greek philosophers about... Of all goods and services Jayati, G 1995, leading issues in economic development and inequalities that typify economy! And expansion LLC, a company registered in Wyoming, USA: Causation accelerate economic growth an... Household saving can be more accurately predicted establish the relationship between population and economic has. A long period outlook on population growth and economic output tend to encourage people to work.. Income unequal countries is not only detrimental for the economy data allow the rate of growth and economic tend. Argues that the relationship affiliations ; Amarjit Kaur ; Chapter on three:... Malthus was among classical economists who attempted to distinguish economic growth '' is a. expansion of industry...