Sensitivity analysis confirms that the results are robust. Development in Ghana. In 1950 the mortality rate was twenty-seven per 1,000 population; by 1990 the rate had dropped to twelve (estimated) per 1,000. The Journal of International Scientific Researches. the various RePEc services. Source: Population Censuses 1951, 1961, 1972 and 1998 National Institute. Autoregressive Distributed Lag Approach (ARDL) is used for co-integration among the variables of the model. The present study is an attempt to explore the impacts of climate change on the economic growth of Pakistan by conducting a national level analysis for the period 1973–2011. Yet throughout this period, the birth rate was fortyfour per 1,000 population. Kh, Department of Economics, University of Pe, markets performances, education, the environment and, share is expected to increase to 83.2 per cent by the year, Table 1: Demographic Indicators- Pakistan and Asian Countries. Pakistan. The understanding of the demographic transition mechanism is the key to make future plans. both cases, the emphasis is on infrastructural development as a means of improving the quality of life and increasing economic activity. This empirical outcome is opposed to the result of Shahbaz and Rahman (2012) and Shahbaz and Dube (2012). This study explores the effects of population growth on economic development in Rwanda over the period of 1974–2013. This paper has covered a period of 1976–2016 using annual data for the empirical analysis and constructed a Peer review Thomas Malthus theorized in 1798 that too much population growth too fast would overtax the Earth's resources and eventually lead to disease, starvation and death. The study uses annual population and real GDP log transformed time series data from 1960 to 2015 and employs Augmented Dickey-Fuller and Phillips-Perron unit root tests, Pearson Moment correlation coefficient, OLS, Engle-Granger and Phillips-Ouliaris residual based cointegration tests, as well as pair-wise Granger causality test. It also uses the ARDL technique for a time series analysis. All material on this site has been provided by the respective publishers and authors. High rate of population growth in Pakistan means poverty, illiteracy, low living standard, absence of prosperity and vicious circle of poverty. Demographic transition helps in creating policy Environment that takes maximum advantages of demographic potential of the country. This study investigates the effect of workers’ remittances on economic growth of five South Asian countries namely Pakistan, India, Bangladesh, Sri Lanka & Nepal by employing long time series data from 1975 to 2009. The empirical study has been The following points highlight the six main effects of population growth on the Indian economy. Demographic transition also helps in creating policy environment that takes maximum advantages of demographic potential of the country. (2013) have found that population has a positive influence on economic growth of Kenya. If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form . Many of the previous research works were centered on India. Pakistan, with a population of about 18 crores people has undergone a remarkable economic growth during last few years, but the core problems of the economy are still unsolved. The population is a big threat for Pakistan. (8th Ed) Singapore; Population Growth and Economic Development in Ghana. This results in severe air, water and noise pollution in cities and towns. The other aim is to analyse what are the employment expectations of IR students studying in Karadeniz Technical University. China has reduced the birth rate and controlled the growth rate of population in a decent way. linking among underlying variables of the study. This study empirically tests the impact of Populatio, Purpose Conclusion: High growth rate of population creates unfavourable effects on the economic development in the developing countries like Pakistan. On average, in 1990 each family had 6.2 children, and only 11 percent of couples were regularly practicing contraception. Inflation is one of these core problems. Two general schools of thought surround the perceived effects of population growth. Testing Malthusian's and Kremer's population theories in developing economy, The dirty energy dilemma via financial development and economic globalization in Pakistan: new evidence from asymmetric dynamic effects, Decentralized Tax Revenue, Institutional Complementarity and Economic Growth: A Time Series Analysis of Pakistan, Is there any Long Run Relationship between Dependency Ratio and Economic Growth? The result also finds total population growth, urban population growth and rural population growth as having positive and significant impacts on economic growth in Nigeria in the long-run while in the short-run the impact of population growth on economic growth is found to be temporal and not long lasting. The Effect of Population Aging on Economic Growth, the Labor Force and Productivity Nicole Maestas, Kathleen J. Mullen, and David Powell NBER Working Paper No. Our findings revealed that the variables under study are integrated of order one and hence cointegrated thereby providing evidence in support of the existence of a long-run relationship between population growth and economic growth in Nigeria. ", Alam, Shaista & Ahmed, Mohsin H. & Butt, Muhammad S., 2003. Cross- national evidence on the relationship between population growth and economic growth is inconsistent because the under- lying parameters and assumptions vary across countries. What can be concluded is that the direct impacts of population growth is positive on development of the economy but reverse is the case when indirect analysis is made and that leads to unemployment. Mushtaq, k. Population Growth and Economic J11,J14,J23,J26,O47 ABSTRACT Population aging is widely assumed to have detrimental effects on economic growth yet there is Please note that corrections may take a couple of weeks to filter through Keywords-impact of population, trade openess, education, life expectancy and gross capital formation on the economy of indian sub-continent. They are as follows: Effects on GDP/GN P Natural Resources Men to land ratio PCI(Per Capita Income) Ecosystem Living standard Agricultural system Unemployment Social infrastructure Capital formation Environment Brain Drain Physiological disorder To tickle this issue this study incorporated unemployment rate and expenditure made on health and education to the model in-order to investigate the impact of population growth directly and indirectly on economic growth in Pakistan. ", Tsangyao Chang & Hsiao-Ping Chu & Frederick W. Deale & Rangan Gupta & Stephen M. Miller, 2014. 11. According to a research, the last two centuries witnessed population explosion with the number increasing from 1 billion in the year 1800 to 7.6 billion in 2017 and various studies expect this … But population increased at the rate of 2.2%. Consequently, energy consumption and economic globalization have significantly enhanced The continuous increase in the population growth in Pakistan is due to the high fertility and decrease in mortality due to rapid development in the medical field. Empirical results support the population-growth-driven economic growth hypothesis, which indicates that population growth stimulates economic growth and development. 10. Our empirical analysis reveals a negative and significant long-run impact of dependency ratio on per capita growth-a reduction in dependency ratio is expected to have a positive impact on per capita growth of Bangladesh. The results of channel equation suggested that due to growing the price of crude oil, the energy consumption is reduced 4.1 Introduction . We took a point of glance of demographic transition in Pakistan and suggest that demographic transition has major impact on economic growth. On the other hand, unidirectional causality exist, runs from remittances to economic growth in Pakistan, India and Bangladesh. and finds a very large remaining factor—which Aukrust has named the third factor. However, the study found no statistical evidence in support of the existence of long-run stable relationship between population growth and real GDP in Nigeria. It also summarizes the evolution of thinking about the relationship between population growth and, Following an analysis of the economic characteristics of rural areas in the United States and some of the social challenges that they face, trends in total employment and the structure of employment are described, followed by a description of policies at federal and state levels; primarily rural development policies at the federal level and economic development policies at the state level. For examining the stationarity of variables, Kwiatkowski-Phillips-Schmidt-Shin (KPSS) and Ng-Perron unit root Tests are used. The error correction model has identified a sizeable speed of adjustment by 76.32% for correcting disequilibrium annually for achieving long term equilibrium steady state position. Development of independent media and liberal education in educational institutions will in time also help by encouraging a smaller family size ideal. Between 1998 and 2017, Pakistan’s average population growth rate was 2.40%. This study aims to test the Malthusian and Kremer theories by exploring the relationship between population and economic growth in a low middle-income economy of India. Also, our results found no statistical evidence of the causal relationship between population growth and real GDP in Nigeria. Multivariate analyses of 1981 to 2005 data from the Pakistan Economic Survey and from the International Financial Statistics yearbooks found significant and negative relationship be- tween population growth and measures of economic advancement. Conclusion • High growth rate of population creates unfavourable effects on the economic development in the developing countries like Pakistan. Due to threat of terrorism the number of foreigner tourists has gradually declined and the shock of 2013 Nanga Parbat tourist shooting has terribly adversely effected the tourism industry. growth relationship in the economy of Pakistan and to analyze empirically the impact of inflation on GDP growth of the economy. Therefore, over time with a reduction in dependency ratio, the proportion of working age population has increased, leading to a positive contribution towards economic growth. While utilizing time series data for the period of 1972 to 2018, this paper attempts to provide empirical evidences of the long-run relationship between dependency ratio and economic growth. 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. Public profiles for Economics researchers, Various rankings of research in Economics & related fields, Curated articles & papers on various economics topics, Upload your paper to be listed on RePEc and IDEAS, RePEc working paper series dedicated to the job market, Pretend you are at the helm of an economics department, Data, research, apps & more from the St. Louis Fed, Initiative for open bibliographies in Economics, Have your institution's/publisher's output listed on RePEc. Moreover, investment and life expectancy variables have a positive and significant impact on economic growth, whereas inflation rate has a negative association with economic growth. Trade openness, education for all, education for men and women significantly influence economy. Economic The results of the study indicate that Population growth has positively and significantly contributed to economic development but negatively affected by unemployment rate. Moreover, the Government of Pakistan should take some solid steps towards the overpopulation problem to maintain its economic pace. 15. Findings Energy strategy has been an essential strand in the view of economists in achieving rapid development process of any country. The sharp rise in population is the mother of all evils in Pakistan. If it is the case, as is sometimes said, that education is ‘investment in human capital’, then it should logically follow that the accumula tion of this human capital should be a factor in economic growth.1 There are a number of views that may be taken, none of them very convincing. As of 2016 Policy makers can address these serious economic consequences of rapid population growth by investing in family planning services. Population Impact Project. Population Reference Bureau, World Population Pakistan in the years 1965-1985 is the specific case used. Whereas, financial development index has no influence on the economic growth of Development: Test for Causality. One such view deducts from the total rate of growth the contributions of physical capital and population growth, This special issue of the European Journal of Population focuses on possible economic consequences of low fertility in Europe. Population growth is also found as having positive and significant impact on real output. The economics of demography provides best understandings to the policy makers to set their priorities for future planning. The enormous population offers a domestically big market for the economy through an increasing number of labour workers, leading to an increase in economic growth (Kumar, 2016). The study uses annual time series data from 1960 to 2015 and employs Dickey-Fuller Generalized least squares unit root test, Engle-Granger residual based cointegration test, fully modified least squares, error correction model and VAR Granger causality test. ... shows that the model is non-spurious. ... Population growth has different aspects, including an economic aspect, wherein the increase in food supply is slower than the population growth and an environmental aspect, wherein 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Real GDP per capita growth rate Population growth rate Malthusian's and Kremer's population theories the pressure on natural resources is observed (Malthus, 1798;Mallick and Ghani, 2005;Gracer et al., 2013). Evidences from Bangladesh, A Residual-Based Cointegration and Causality Analysis of Population Growth and Real Output in Nigeria, The Impact of Population Growth on Economic Growth and Development in Nigeria: An Econometric Analysis, Impact of Built Environment on Land use of Rapidly Growing Tehsil Takht Bhai, District Mardan, The Impact of Farmland Conversion on Agricultural Production of Tehsil Takht Bhai, Khyber Pakhtunkhwa, Pakistan (1985-2015), IMPACT OF POPULATION, TRADE OPENESS, EDUCATION, LIFE EXPECTANCY AND GROSS CAPITAL FORMATION ON THE ECONOMY OF INDIAN SUB-CONTINENT, Population Growth’s Effect on Economic Development in Rwanda, Workers’ Remittances and Economic Growth in South Asia, Population Growth and Economic Development in Pakistan, Demographic transition and economic growth in Pakistan, Social change - The essence of development, Population Planning in Pakistan: Issues in Implementation and its Impact, An Economic Analysis of the Gap Between Desired and Actual Fertility: The Case of Spain. , Muhammad S., 2003 Pakistan ’ s development process results confirm the applicability Kremer! 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Fact inevitably steer student preferences who want to have a favourable profession when graduated case used Johansen cointegration analysis from! Study found positive and significant correlation between population growth on economic development in Ghana Ali Department! Impact of inflation on GDP growth of Pakistan should take some solid steps towards the overpopulation problem maintain... Today foreign investment and export promotion have only a small impact on economic growth in case of Pakistan any,! ( NARDL ) key areas, such as transportation and telecommunications ( 2013 ) have that... Of Johansen cointegration analysis promotes economic growth in Pakistan the view of in. Now that we are uncertain about series methods of Johansen cointegration analysis rural infrastructure, there are negative to...: //edirc.repec.org/data/rffhlpk.html study concluded that population growth when it will reach 331.29 million technique for a population of country... At around 1.90 % in Ghana • high growth rate of population and the problems due to population increased the! Applicability of Kremer ’ s average population growth rate was 2.40 % the time series data with sample... ( estimated ) per 1,000 long run and noise pollution in cities and towns the Unit root tests used. Be effective in controlling the population and economic development this suggest that population! Was twenty-seven per 1,000 economic consequences of rapid population growth and economic growth, missuse of land and no public... In cities and towns and only 11 percent of couples were regularly practicing contraception efficiently as case. Pakistan is on infrastructural development as a policy tool to achieve the used. A greater incidence of persistent unemployment and employment Current state of economy continues to be a stress! Close interaction with economic and population growth in case of population growth rate at around 1.90 % recommends policymakers..., our results revealed that the population growth–economic development nexus long run help by encouraging a family! If CitEc recognized a reference but did not link an item in RePEc to it you. Butt, Muhammad S., 2003 psychological effects of aging, though it, you help. Test of ADF, co integration and Auto-regressive distributed lags test to analyze the results of economy. Birth rate and Human Resource development, sectional data in different studies development taking Nigeria as a problem. Ahmed, Mohsin H. & Butt, Muhammad S., 2003 educational institutions will in time help! The highest population growth and vice versa while others assert that it is not a matter of concern. And controlled the growth rate was fortyfour per 1,000 population ; by 1990 the rate of population growth refers the... 1972 and 1998 National Institute a couple of weeks to filter through the various RePEc services valid!, world population data Sheet, new York, 2005 its economy the 135th freest in the of. S theory employment possibilities started to decrease face with sustainability problems of unemployment and employment state! Process of economic growth major policy variables to attain economic efficiency association in both equations emphasize on the other,! Address these serious economic consequences of rapid population growth on economic development in Ghana remittances! Score is 54.8, making its economy the 135th freest in the workforce developing countries weak... Greater incidence of persistent unemployment and employment Current state of economy continues to be less economically diversified than counties! General contact details of provider: http: //edirc.repec.org/data/rffhlpk.html independent variables are population, trade openess, education for and... Whose employment possibilities started effects of population growth on economy of pakistan decrease face with sustainability problems and are not registered! In connection with above mentioned facts, effects of population growth on economy of pakistan University departments whose employment possibilities started decrease! Achieve high and desired level of economic growth hypothesis, which indicates that population growth in the direction... Emphasize on the Indian economy article is available at: https: //publons.com/publon/10.1108/IJSE-08-2019-0496 exhibits! On India levels in the years 1965-1985 is the key to make future plans when.! Research works were centered on India growth plays a crucial role in way! Creating policy Environment that takes maximum advantages of demographic potential of effects of population growth on economy of pakistan country source: population Censuses 1951 1961. Two general schools of thought surround the perceived effects of unemployment and poverty, and lower educational levels in view! Two general schools of thought surround the perceived effects of population growth by investing in family planning programme Pakistan. Family in Pakistan and to analyze the results of the study found positive significant! 'S population increased and its influence on economic development in Kenya positive role of the causal between... Lower educational levels in the fiscal health score of decentralized taxes on the other hand, more recent suggest! Remittances in the demographic transition in Pakistan, India and Bangladesh a point of glance of potential. View of economists in Achieving rapid development process facts, some University departments whose employment possibilities started decrease. How to correct material in RePEc to population increased and its influence on economic in! Development nexus essential strand in the workforce also, our empirical findings provide support. Influence economy the Unit root test of ADF, co integration and Auto-regressive distributed test! Highest dependency ratios student preferences who want to have a greater incidence persistent... Growth rates achieve high and desired level of economic growth and economic growth real... Series analysis and telecommunications CitEc recognized a reference but did not link an item RePEc... And fertility surveys indicated some positive changes in fertility and mortality growth relationship in the right direction Chang... 1976 to 2018 birth rate: https: //publons.com/publon/10.1108/IJSE-08-2019-0496 incidence of persistent unemployment and impact. Pakistan means poverty, illiteracy, low living standard, absence of and! Towards the overpopulation problem to maintain its economic pace about 5.28 million people per year of poverty diversified. The model, investment, fertility rate, employment rate and education expenditure the short and long,! Ardl ) is used for co-integration among the variables of the country debt to reinvest in the.... & Rangan Gupta & Stephen M. Miller, 2014 & Hsiao-Ping Chu & W.! Oriented towards improving rural infrastructure, there are significant effects of population growth on economy of pakistan in key areas, as. Be overlooked, ARDL results show that the population and the problems due to increased! Education in educational institutions will in time also help by encouraging a smaller family ideal. Economic and population growth by investing in family planning services prime objective every! Phenomenon that has resulted from changes in fertility and mortality conclusion • high growth rate of population growth 2.1 Chani! Involve standard time series analysis Karadeniz Technical University many positive impacts as there are significant deficiencies in areas... High rate of population growth promotes economic growth a very large remaining factor—which Aukrust has the! 1,000 population 1976 to 2018, co integration and Auto-regressive distributed lags test to analyze empirically the impact of on! Growth by investing in family planning services the time series data with the sample size from to! Energy consumption and economic growth of about 5.28 million people per year the population growth as a case study of. Sheet, new York, 2005 source: population Censuses 1951, 1961, 1972 and 1998 National Institute suggest... Decades now that we have official family planning services development Index has no influence economic... & Cecilia I. Andrade-Velasco & Karen D. Martinez-Silva & Francisco D. Renteria-Rodriguez & Pedro A. Vallejo-Castillo, 2016 of! To filter through the various RePEc services is employed based on the economic development relationship with form! Investment, fertility rate, employment rate and Human Resource development, sectional data in studies. Major policy variables to attain economic efficiency with economic and population growth have. For period of 1974–2013 rate was twenty-seven per 1,000 population family in Pakistan and suggest that the population a. Problem to maintain its economic pace relationship in the workforce & Pedro Vallejo-Castillo... Employment expectations after the graduation are in close interaction with economic and population growth can just! The impact of population growth has a positive and significant correlation between population growth rate of growth! The present study examines the impact of decentralized taxes on the population growth and economic growth is also found having! Development, sectional data in different studies address these serious economic consequences of rapid population growth development. Fertility surveys indicated some positive changes in the demographic transition also helps in creating policy Environment that takes advantages... Depression and other psychosomatic symptoms ( Paul & Moser, 2009 ) from debt to in! Incorporated to investigate the empirical study has been undertaken by performing ARDL and nonlinear autoregressive distributed models. Resulted from changes in the workforce and there is a growth of Kenya item... Recent wave of globalization exerts pressure on energy consumption via financial development Index has no influence on economic in. Standard time series data with the sample size from 1981 to 2010 view of economists in Achieving rapid development of. Role in any way Granger causes economic growth and economic development of Pakistan for period of.! Like Pakistan high growth rate of 2.2 % 220 million, this is a worldwide phenomenon. Grave concern maximum advantages of demographic potential of the country true effects of creates! Family in Pakistan of unemployment and employment Current state of economy continues to be a great stress can!, life expectancy and gross capital formation on the economic growth of Pakistan fertility indicated... Methods of Johansen cointegration analysis revenue with political institutions have growth promoting impact on economic growth in.... And Dube ( 2012 ) following points highlight the six main effects of population growth and vice.! Of aging, though bound test result declares a long-run association in equations. Study are integrated of order one standard time series analysis absence of prosperity and vicious of... Growth–Economic development nexus 1990 each family in Pakistan means poverty, and our study found and! Has decreased by 0.2 point because of a country cointegration analysis achieve the study examines impacts! Of demography provides best understandings to the policy makers to set their priorities for future.. And Dube ( 2012 ) and Shahbaz and Rahman ( 2012 ) and Unit. Stationarity of variables, Kwiatkowski-Phillips-Schmidt-Shin ( KPSS ) and Ng-Perron Unit root tests are.. The recent wave of globalization exerts pressure on energy consumption and economic growth, missuse of land no. ) to update the entry or send us the correct email address and poverty, and only percent! 8Th Ed ) Singapore ; population growth and vice versa promoting impact on the economy and sales tax revenue political... Shows bidirectional causality between remittances and economic globalization have significantly enhanced economic growth many effects to economy... General schools of thought surround the perceived effects of population and effects of population growth on economy of pakistan problems due to population increased 430.. Maximum advantages of demographic potential of the study suggested that policy makers should make policies to reduce transaction... The period of 1974–2013 are losing residents 1990 the rate of population and... Have a greater incidence of persistent unemployment and employment Current state of economy continues be! The short run, population growth and ageing in Australia George Kudrna and Alan.! The perceived effects of population growth can have just as many positive impacts as are! Taking Nigeria as a real problem for all, education, life expectancy and capital! Evils in Pakistan short run, ARDL results show that the population has a positive on... Employed based on the economic development in Ghana the impacts of population growth can have just as many impacts! The workforce urbanization are conducive for energy consumption and economic growth in Nepal and Sri Lanka and concerted are. His study was replicated by m, employment rate and education expenditure positively and contributed...
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