between population growth and economic growth in the UK. The fact Very strong population growth helps to explain why GDP per capita, and therefore living. Previous studies examining the correlation between population growth and economic growth failed to examine their two-way inter-relationship. Even though . If population growth and per capita the actual relationship between these variables. . Yoo () develops three models to examine the impact of.
Fewer births translate into slower population growth. In Panel bwe see that high-income nations had much slower rates of population growth than did middle- and low-income nations over the last 30 years.
In Panel bwe see that low-income nations had a much higher rate of population growth during the — period. Hong Kong, for example, has enjoyed dramatic gains in income since the s. Its birth rate and rate of population growth have fallen by over half during that time.
But if economic development can slow population growth, it can also increase it. 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.
Such gains can dramatically reduce disease and death rates. As desirable as such gains are, they also boost the rate of population growth. Nations are likely to enjoy sharp reductions in death rates before they achieve gains in per capita income. That can accelerate population growth early in the development process. Demographers have identified a process of demographic transition in which population growth rises with a fall in death rates and then falls with a reduction in birth rates.
The process of demographic transition has unfolded in a strikingly different manner in developed versus less developed nations over the past two centuries.
Relationship Between Population Growth & Economic Development | nanda nepali - dayline.info
Inbirth rates barely exceeded death rates in both developed and less developed countries. The result was a rate of population growth of only about 0.
Among developing nations, the birth rate was unchanged, while the death rate was down only slightly. The combined result was a modest increase in the rate of world population growth. Changes were much more rapid in the 20th century. Bythe death rate among developed nations had plunged to about one-quarter of its level, while the birth rate had fallen by half. In developing nations, death rates took a similarly dramatic drop, while birth rates showed little change.
The result was dramatic world population growth. Less developed nations have begun to make progress, with birth rates falling by a slightly greater percentage than death rates.
The results have been a sharp slowing in the rate of population growth among high-income nations and a more modest slowing among low-income nations. Continued slowing in population growth at all income levels is suggested in Figure For the world as a whole, it is predicted that population growth will slow to a 1. Actual and Projected Population Growth Population growth has slowed considerably in the past several decades. Oxford University Press, for the — period, in which categories refer to low, middle, and high human development rankings.
Key Takeaways The rate of increase in per capita income roughly equals the rate of increase in income minus the rate of increase in population. High rates of population growth do not necessarily imply low rates of growth in per capita income. A demographic transition is achieved when rising incomes begin to reduce birth rates and bring population growth in check.
The text gives two main reasons why the Malthusian trap did not occur: How do these two reasons alter Figure China is an example of a country that has achieved a very low rate of population growth and a very high rate of growth in per capita GNP. As recently as the early s, China had a relatively high rate of population growth; its population expanded at an annual rate of 2. By the s, that rate had plunged to 1. This dramatic drop in the population growth rate was brought about by a strict government policy by which couples are allowed to have only one child.
Disincentives have been known to include fines, loss of employment, confiscation of property, demolition of homes, forced abortions, and sterilization. While the Chinese government has denied that forced abortions and sterilizations are part of its strategy, policies are administered locally, and all of the above means of coercion seem to have been employed at one time or another.
If a woman who already has one child becomes pregnant, she will most likely be forced to have an abortion. Although the policy has achieved its desired result—reduced population growth—it has had some horrible side effects. Given a strong cultural tradition favoring having a son, some couples resort to infanticide as a means of eliminating newborn daughters.
Population Growth and Economic Development
When the sex of an unborn baby is determined to be female, abortion is common. Fearful that pro-democracy and human rights activists from other countries might stir up those movements locally, the Chinese government actually designed the Beijing Conference so as to minimize contact between Chinese and foreigners. There are signs, though, that Chinese officials may have heard the message.
The new approach to family planning emphasizes health care, education, and reduction in poverty to encourage women to have fewer children. International pressures may only be part of the reason for the emerging Chinese change of heart. However, few would question the view that they are more adaptable and easier to train for new jobs. A young population should also provide a larger flow of school-leavers able to start work in the industries where labour is most needed.
The difficulty and expense involved in the movement of workers between industries are thus avoided. The ability of workers to move easily from one job to another is called mobility of labour. It is particularly important in economies such as that of India which must respond not only to changes of demand at home but also to foreign demand and competition. Moreover, this group bears the burden of supporting the non-working members of the community. If a larger proportion of the population is either retired or at school, the extra cost of pensions or education falls on relatively smaller numbers who are working and earning.
The first is the population density in relation to natural resources and the second is technology. Moreover, if the society has a limited stock of capital, labour may have to be substituted for capital in which case the production function will exhibit the law of diminishing returns.
This occurs if the variable factor is labour, while capital is a fixed factor. In studying the population problem of LDCs we have to take note of the absolute size of the population base. The size of the population base is of great importance as it affects the total scale of the economy. 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. A potentially expanding market may stimulate entrepreneurs to invest more and more in capital goods and machinery.
Business activity will be spurred as a consequence. And more income and employment will be created in the process. Moreover, it will provide an outlet for the products of efficient large-scale, mass-production industries. The net effect may be favourable to the country.
Population Growth and Economic Development
Of course, the size of the domestic market of a country does not only depend on the numbers, but also on the per capita income level. But given the same low level of income per head, a country like India offers a more favourable environment for setting up heavy capital goods industries which depend so much on the economies of scale for their success.
In contrast, a thickly populated country with a small population base such as Sri Lanka seems to be especially handicapped by the small size of its domestic market. Population growth has been a favourable factor in stimulating growth in many countries in the last two centuries, when vast areas remained largely unsettled. Even in the USA, in the s, it was apprehended that a slowing down of the rate of population growth would lead to long-run secular stagnation. Contrarily, in India today the prophecies of Malthus have largely proved their validity.
And it is believed that a slowing down of population increase might contribute substantially to our development prospects. So, what is sauce for a goose may not be a sauce for a gander. The moot point is that population growth may be either favourable or unfavourable to economic development, depending on where, when, and how it takes.
This makes development not only more desirable but also more difficult. Per capita income is calculated by dividing national income by the size of the population. In most developing countries population is growing steadily even today.
This is important obstacles to development.
The most serious problem for most developing countries seem to be controlling the growth of their population.