International Journal of Applied Research in Management and Economics
Year: 2018 | Volume: 1 | Issue: 2 | Page No.: 1-8
Investigating the Role of Balance of Population and Economic Growth in Achieving Sustainable Economic Growth (Case Study: Upper-Middle Income Countries during 1985 to 2016)
Habib Allah Sadeghi
Contrary to neoclassical view, the population and its components are one of the factors affecting long-term economic growth. Some studies have pointed to the negative impact of population growth and others on its positive impact. The purpose of this paper is to examine the impact of population growth on economic growth during 1985 to 2007 and 1985 to 2016 among the 32 member countries of the upper-middle income group. Using World Bank data (2016) and the panel’s method, the impact of population growth and birth rate on economic growth in two continuous periods has been investigated. The results show that the more we approach the present time, the impact of population growth and birth rate on economic growth in upper-middle income countries decreases; consequently, if the effect of these two components i.e population growth and birth rate is not controlled in this group of countries and countries with lower income, it will be led a negative effect on economic growth. Therefore, considering this research, the effect of demographic factors can be shown as long-term; it is important to note that by declining population growth and birth rate in this group of countries, investment, productivity of workforce and the population in age of activity increases. Economic growth reduces due to the disruption of the balance and the increase in population on the economic power. By increasing one unit of the population growth, economic growth has achieved to 0.17% reduction in 2016 from 0.26% increase in 2007.
Keywords:Population Growth, Economic Growth, Balance, Birth Rate, Sustainable Economic Growth
How to cite this article:
Sadeghi, H. A. (2018). Investigating the Role of Balance of Population and Economic Growth in Achieving Sustainable Economic Growth (Case Study: Upper-Middle Income Countries during 1985 to 2016). International Journal of Applied Research in Management and Economics, 1 (2): 1-8.