The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh

Does population growth induce or depress economic growth? Or, does economic growth encourage or discourage population growth? This is a long-existing debate which has sustained throughout the centuries. This paper investigates the causal relationship between GDP per capita and population growth in B...

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Autor principal: Zahan, Iffat
Formato: Working Paper
Lenguaje:en_US
Publicado: BRAC Institute of Governance and Development (BIGD) 2022
Materias:
Acceso en línea:http://hdl.handle.net/10361/15888
id 10361-15888
record_format dspace
spelling 10361-158882022-01-12T21:01:43Z The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh Zahan, Iffat Cointegration Causality Demographic transition Economic growth GDP per capita Malthusian regimes Population growth Does population growth induce or depress economic growth? Or, does economic growth encourage or discourage population growth? This is a long-existing debate which has sustained throughout the centuries. This paper investigates the causal relationship between GDP per capita and population growth in Bangladesh. Using the Johansen co-integration test, we find evidence of a long-run relationship between population growth and GDP per capita. Next with a Vector Error Correction Model (VEC), we find a causal direction between the two, which suggests that in Bangladesh population growth actually negatively affects GDP per capita, but not vice versa. Therefore, to some extent, Bangladesh is in the Modern Growth regime stage. Hence, the policy implication is very clear: appropriate measures should be taken in order to arrest population growth. 2022-01-12T08:53:52Z 2022-01-12T08:53:52Z 2016 2016-09 Working Paper http://hdl.handle.net/10361/15888 en_US https://bigd.bracu.ac.bd/publications/the-long-run-relationship-between-population-growth-and-economic-growth-empirical-evidence-from-bangladesh/ application/pdf BRAC Institute of Governance and Development (BIGD)
institution Brac University
collection Institutional Repository
language en_US
topic Cointegration
Causality
Demographic transition
Economic growth
GDP per capita
Malthusian regimes
Population growth
spellingShingle Cointegration
Causality
Demographic transition
Economic growth
GDP per capita
Malthusian regimes
Population growth
Zahan, Iffat
The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
description Does population growth induce or depress economic growth? Or, does economic growth encourage or discourage population growth? This is a long-existing debate which has sustained throughout the centuries. This paper investigates the causal relationship between GDP per capita and population growth in Bangladesh. Using the Johansen co-integration test, we find evidence of a long-run relationship between population growth and GDP per capita. Next with a Vector Error Correction Model (VEC), we find a causal direction between the two, which suggests that in Bangladesh population growth actually negatively affects GDP per capita, but not vice versa. Therefore, to some extent, Bangladesh is in the Modern Growth regime stage. Hence, the policy implication is very clear: appropriate measures should be taken in order to arrest population growth.
format Working Paper
author Zahan, Iffat
author_facet Zahan, Iffat
author_sort Zahan, Iffat
title The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
title_short The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
title_full The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
title_fullStr The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
title_full_unstemmed The long run relationship between population growth and economic growth: Empirical evidence from Bangladesh
title_sort long run relationship between population growth and economic growth: empirical evidence from bangladesh
publisher BRAC Institute of Governance and Development (BIGD)
publishDate 2022
url http://hdl.handle.net/10361/15888
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