The Impact of Population Growth on the Economic Growth of Selected South Asian Countries: A Panel Cointegration Analysis

The Impact of Population Growth on the Economic Growth of Selected South Asian Countries: A Panel Cointegration Analysis

Author: zant worldpress

This study is done to assess the relationship between the population
growth and economic growth. The analysis is carried out on a sample of
five South Asian countries. The study investigates the impacts of
population growth and the problems due to this change in population and
its influence on economic growth. We take the time series data with the
sample size from 1980 to 2015. In this research paper, economic growth
is the dependent variable and population, urban population, fertility rate
and life expectancy at birth rate are the independent variables; data
collected from World Development Indicators (WDI). Unit root tests,
Cointegration tests, and Granger causality tests, followed by Vector Error
Correction Model (VECM) is used to examine the relation between
population and per capita GDP for the selective South Asian countries.
The VECM result reveal that in the long run equilibrium, the population
growth and strength has no significant impact on per capita GDP. The
granger causality test shows that there also exists no causality between
economic growth and population growth. The research paper concludes
that a long-run relation between population and real per capita GDP
does not appear to exist and therefore, population growth neither causes
growth of economic growth, nor is caused by it.

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