The paper explains the relationship with the age composition, growth rate, birth and death rates. Equation for the model is: Y= β_(° )+β_1PG+β_2UR+β_â( @3)I+µ, I=Investment (% GDP) Independent Variable. Unemployment and underemployment increased in the country due to the limited productivity of the land. Pakistan has a official policy to control population growth since 1965 till present day. Does an Inflation and Growth of a country affect its Foreign Direct Investment? In 1998 survey, Pakistan population was 130.5 million and is the 7th largest populated country in the world. Per capita income in Pakistan is about $ 1254. The country is facing many problems because of the increasing population as the rural people are moving to urban areas. Yearly population increase. Looking for a flexible role? High Fertility rate harms the health of the mothers and children, increases the health risk of pregnancy and child mortality rates. Although many refugees were sent back due to the hard work of NGO’s but still 1.4 million refugees stayed back in Pakistan. The age at which females were married was increased from 15-19 years to 20-22 years. Bucci and La Torre (2007) used a two-sector endogenous growth model. Government efforts were supported by NGO’s through clinic based services especially in rural areas. High fertility rates in the past, coupled with falling death rates, have meant that Bangladesh still has tremendous inbuilt growth potential given the age structure of its population. The government of Pakistan should take into account the problem of unemployment. Please note that the above text is only a preview of this essay. • Poverty alleviation policies, even if they do not reduce inequality, may promote economic growth. Inflation and Economic Growth: Evidence from Pakistan. Julian Simon (1996) studies the relationship for the developing countries and states that there exists a positive relationship between population growth and economic development. The main reason of Population growth in Pakistan is lack of education and awareness. Effect of Population on Resources Population growth was a concern as far back as 1798, when English economist Thomas Malthus predicted that it would eventually reduce overall living standards. “The average annual percentage change in population resulting from surplus of births over deaths and balance of migrates entering and leaving a country. While preparing 85th year Development Plan, a new scheme was introduced to offer services though community based family planning services. Economics The growth rate is a factor in determining how a great burden would be imposed on a country by the changing need of its people for infrastructure (e.g school. Registered Data Controller No: Z1821391. Gross Domestic Product depends on other factors as well; Independent Variable. When population increases, there is a decrease in capital formation like distribution of national income. He concluded that population growth can provide scope for the division of labor that leads to productivity progress. Indian population is growing at a rate of 1.8 percent per annum. Furuoka (2005) case study for Malaysia examines the relationship between population growth and income. Pakistan has failed to provide basic necessities such as education, employment and health services to its people and the reason behind these problems is the high population growth rate. Pakistan is in a very temperate zone which causes the people to be more fertile. According to UN prediction, Pakistan will be 3rd largest Populated country by the year 2050. It is also our duty as citizens of a country to help our government and NGO’s to fight against the problem of increasing population growth and save our Country from several problems and obstacles which may arise from overpopulation. Since the Pakistan came into being, It suffered from high population growth rate. Population growth rate of Pakistan was 2.7% in 1960’s. The subject of the effect of economic growth and CO 2 emissions has been well-documented in the econometric energy literature. Economic growth can be achieved when the rate of increase in total output is greater than the rate of increase in population of a country. Why does the Economic Recovery and Growth Plan describe the high population growth in Nigeria as a risk factor? Uganda was one of the faster growing economies in Africa with sustained growth averaging 7.8 % since 2000 with the annual inflation rate decreasing from5.1% in 2006 to 3.5% in 2009. The most of the effect of Unemployment rate is bear by the poor population in an economy because they are the ones who are made worse off and have fewer opportunities and no job means less survival rate. (Amjad,A.2013), Second view argues that population growth is desirable for economic development. Article 3: Fertility in Pakistan, Past, Present and Future by Zeba A. Sathar. Each family in Pakistan on average has 3.1 children. This study empirically tests the impact of Population growth on Economic Development of Pakistan for period of 1975-2008. This was one of the reasons in decrease in fertility rates and Population growth rates in 1990’s in Pakistan. According to the second measure of trade openness (exports as a share of GDP), the findings indicate a threshold of 355.68%, suggesting that trade affects economic growth positively until exports account for 355.68% of GDP. Decrease in Population growth will cause increase in economic development and will bring economic prosperity in Pakistan. The conclusion of the study was that Investment in the human capital increases the economic development in the Urban areas while dismal in the rural area particularly in women. India is India is experiencing demographic transition that has increased the share of the working-age population from 58 percent to 64 percent over the last two decades. He founded that the division of labor cannot explain population, productivity is explained by the division of labor, determined by transaction efficiency. However, the two don’t move in lockstep, as a recent Economic Synopses essay shows that pollution increases at a slower rate than economic growth. Due to increase in population it may lead to brain drain (consumption of local talent by foreign like Nigeria). The concentration of CFC’s is increased due to increase in population causing damage to Ozone layer. The effect of population growth can be positive or negative depending on the circumstances. Pakistan can take advantage from investment in the human capital and more employment options for the target to achieve economic development. 1) Population growth variables that emphasize the relative growth of the young/dependent population (ages 0-14 years) should show a more adverse effect on economic growth than measures of growth in the total or working-age populations. Compares India with High-fertility areas differing in size, low income, general strategy of development. After Pakistan absorbed thousands of Muhajirs, it was faced by another problem. At the time that he made his prediction, the world's population was only at 800 million, but now, it's over 7 billion. Bloom and Williamson (1997) found that demographic factors are important determinants of economic growth. Government should promote education especially in rural areas of Pakistan. In Southeast Asia, the estimated effect of population ranges from 0.9% to 1.8% of economic growth. China provides a clear example by suddenly introducing a collection of highly coercive methods to reduce the total fertility … This proved to be a burden on the economy of Pakistan. So why does population growth matter at all? The effect of population growth on per capita GDP growth is linear and everywhere negative. We need to improve the status of women in our society to decrease the population growth. In 1990’s, there was also high rate of urbanization which caused decrease in fertility rates and decrease in Population growth. The average coefficient between 1953 and 1989 was 0.58, which indicated that the blockage effect from population growth was less than the impetus effect of economic growth, but still high enough to offset rapid economic growth. Excessive population has a negative impact on the per capita income as the population growth does not matches the labor force. Major factors responsible for high population growth in Pakistan are high fertility, low contraceptive prevalence rate, high unmet need of family planning, declining mortality, custom of early marriages, son preference, poverty, illiteracy especially of women and lack of women empowerment, religious constraints, beliefs, customs, traditions and lack of recreational activities. It is a type of population growth in which there is indirect relationship between growth rate and numbers of people until it reaches at zero when population level at maximum. According to a survey, 40% of the married women don’t want to have more Childs. In 1950, Pakistan was the 13th largest country and moved to 7th largest country according to the Population size. In Pakistan, Women are married in the age of 15-19 which is also the cause of increase Population growth. 389 p.) calculated the effects of population growth upon economic development in India. When population grows faster than GNP, the standard of living of the people does not improve. I'm thinking that somehow, as the world's population increases to X amount or percentage, there are increased wars and natural disasters. Our academic experts are ready and waiting to assist with any writing project you may have. Inequality arises under such pressures putting a country to hold back from the road of development. Although Government had a policy of two children per family but it was not practically implemented. Assuming that openness to international trade is beneficial to economic growth, a positive coefficient is expected. H1: There exists a positive relationship between population growth and economic development. The basic model of its policy is that the women should seek services of family planning program by her. Case of Pakist an 85 status, living conditions or educational level, poverty is the single largest determinant of human development and poor economic growth (Borooah, 2005; … Population growth rate is 2.1 % and in the list of most populous countries, Pakistan is at 6 th number. Excessive growth in population also affects infrastructure. This research paper also discus a number of policy issues which arise from the result of the analysis relation to education, population growth rate, foreign direct investment, external debt, foreign aid and their proper utilization. Further the argument states that population growth is not a real problem the real problem is the distribution of resources, 80% of the world resources are exploited by the one-quarter of the developed (rich) world and the 20% remaining is used by about the three-quarter of the world population. Day by day, the population of Pakistan is increasing. Their study found that population distribution explains as much as 1.4% to 1.9 % of GDP per capita in East Asia. EssaySauce.com is a completely free resource for students. 1250 family welfare centers were opened throughout the country to educate women especially residing in rural areas of Pakistan about the benefits of birth control. Free resources to assist you with your university studies! In the result, land become inelastic and one cannot increase the amount or supply of land. The study analyzed the effects of population on economic growth in case of Pakistan. Government should put a ban on illegal immigrants and establish proper boarder control to prevent people crossing boarders from neighboring countries. Journal of Management, Economics & Finance , 84-90. European Journal of Scientific Research , 388-393. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Government and NGO’s should work together to make people aware of the benefits of birth control through nationwide awareness program. Mohammad Aurangzeb Majeed (2008), states that the growth of population reflects increase in the Life expectancy years. These include economic benefits such as expansion of tax bases and increased consumer spending at local businesses, as well as innovations by cultures seeking to keep up with growing populations. Success in reducing population growth should be viewed with some caution. We're here to answer any questions you have about our services. Education will make the women of rural areas to learn the negative effects of over population. Soviet Union attacked Afghanistan in 1979 due to which millions of afghan refugees migrated to Pakistan by crossing borders. However, education level of people living in urban areas has cause the marriage age to increase to 20-22 years. The annul population growth rate of Pakistan is 1.67% which is higher than average growth rate of South Asian countries, which is an alarming situation for Pakistan. Shabbir Ahmad (2009), In Pakistan 83% depends upon the agricultural sector for their living and the increase in population results that the number of acres per person has diminished. According to the World Population Data Sheet 2013, Pakistan with the population of 363 million in 2050 is expected to retain the same position. Bangladesh was the world’s eighth most populous country and remains so today. Podrecca and Carmeci (2001) revealed the findings that investment is the most important economic growth determinants as identified by neoclassical and endogenous growth models. Among many reasons, High fertility and declining mortality rates are the most important reasons in Population growth in Pakistan. High Population growth rate is a burden on economy of the developing country. How Population Aging Affects Economic Growth Figure 1 shows the percent of the U.S. population ages 60 and older between 1900 and 2000, and the projected percent through 2050. We take the time series data with the sample size from 1981 to 2010. Analysts watch economic growth to discover what stage of the business cycle the economy is in. Our model is free from hetroskedasticity and autocorrelation with satisfactory functional form that suggests the stability of the model. This is due to advancement in medical field. It is a fact that only 30 percent of married couples support family planning program. Increase in population growth leads to decrease in man to land ratio. More labor is available for the productive resources. A very high birth rate has led to a growth rate of 2.1 % in Pakistani population. On the other end, as the per captia income in Urban society increases the race for higher standard of living increases more rapidly causing the gap to widen resulting the poor to have a huge family to support the living-hood. For example, cocoa is a highly desirable and marketable plant that can only be grown in particular areas and within a certain distance from the equator. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. At an average, there are 4-5 children per women. Trade openness (PWT). As per the Pakistan economic survey (2018-19), 2.4 percent is the current population growth figure in Pakistan, which is recorded as higher than all the Asian economies. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. It is stronger when interaction terms are included in the statistical model. hospital, roads, resources (e.g. In 2001, Population growth rate falls to 2.2%. The study paper states that population growth doesnât really impact the economic growth performance but other factors like age distribution. This is not an example of the work produced by our Essay Writing Service. Ministry of health launched a scheme to provide 40000 lady health workers to go to door to door to educate and provide awareness to illiterate women of rural areas of Pakistan. Population growth has many effects to the economy of Pakistan. Culture pattern, therefore, has effects both on population and economic development but its impact on economic development is mainly through population and that is where this study becomes important. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods included in the analysis of the analyst.. Derek and Andrew (2009) through regression analysis conclude that the impact of population growth varies between being negative, positive and insignificantly different from zero. In fact rapid population growth has been obstructing economic growth in developing countries like India where since 1951 population has been growing at a relatively high rate. The recent population of Pakistan is 186 millions. But on a more general scale, population growth can strain economies unless there are enough people and resources to support it. Birth control campaign and large scale industry should be developed to shorten the gap. Article 2: Demographic Transition and Economic Growth in Pakistan by Shahzad Hussain, Shahnawaz Malik and M. Khizar Hayat. Different schools of thoughts in economics have analyzed the relationship between population growth and economic development. These include heavy pressure on land, land degradation, forests, habitat destruction and loss of biodiversity. 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. Do you have a 2:1 degree or higher? The notion that democratic political institutions help foster economic growth has gained much attention in recent years. 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. As more Americans retire, this will make economic expansion more difficult. The education level of Females in Pakistan is very low. 70% of the Pakistan population lives in rural areas of Pakistan and there is high illiteracy in these areas. Pakistan should focus on Population control in order to provide basic resources to the people. That creates an asset bubble. The result of causality showed that total fertility responds positively with the increase in Gross Domestic Product (GDP) and Infant Mortality does not cause total fertility other factors affect it to increase. Pakistan's yearly population from 1950 to 2012, with estimation since last census (1998). This page of the essay has 1818 words. The average annual real GDP growth rate for Rwanda from 1990-1999 was -0.1 but from 2006 to 2009, Rwanda had an annual average growth rate of 7.3% (Stein, 2010). Population size and growth. People are not aware of the consequences of over population in a country. They pointed out that population growth may have a negative effect or ambiguous effect on a countryâs economic development. For example, in 2005-2006, the rate of increase in India’s GNP was 9.1%, while its population growth rate was 1.7%. Another Problem which Pakistan is facing is the high fertility rates. In Table 41.1 we present population growth in India. The best phase is expansion. Population growth rate of Pakistan was 2.7% in 1960’s. They should be able to learn that repetitive pregnancy can affect their health. Just after independence of Pakistan in 1947, thousands of Muhajirs migrated from India to newly created Pakistan and continue to come until end of 1950’s. In fact rapid population growth has been obstructing economic growth in developing countries like India where since 1951 population has been growing at a relatively high rate. The brightest students know that the best way to learn is by example! Because most of the least-developed countries blamed population growth as a hurdle for their underdevelopment not considered their inherent old prevailing problems. There are many reasons for the growth of Population in Pakistan. They employed the ADF test for unit root and all variables were stationary at first difference. Population growth encourages competition In the business activities as population increases the potential market size increases and new entrepreneurs enter the market to set business. In 1980’s, there were 6-7 children per women at an average but declined to 4-5 children in 1990’s. Religious and Cultural beliefs also play a vital role in the growth of Population. Each one of these independent variables has different effect on Gross Domestic Product. Unemployment rate of a country affects the GDP in a direct or indirect way. The program has not derived good results due to lack of political commitment. Is this the right decision? They are as follows: When the population increases, it directly effects the consumption of that particular country this effect decreases the GDP and GNP of that particular country and also increases the imports. This is because: 1. Illiteracy is also the major contributor of population growth in Pakistan. To what extent is the narration in Lolita more concerned with the aesthetics of writing rather than plot? If women are educated and skilled, they can help in increasing the household income and will therefore increase the living standard of the people. Similarly, to the extent that increased incomes will increase the range of choices and capabilities enjoyed by households and governments, economic growth will enhance human development. However in 1990’s, Prime Minister Benazir Bhutto addressed the issue of Population growth as a national priority. Family planning services have improved in recent years and people now know how to control the fertility rates. It is a recognized fact by now that development has a lot to do with population growth. Once the country has got tremendous growth, reduced unemployment the population growth will be corrected of itself. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. This research paper has adopted the model of Regression analysis. It increases the dependency ratio, putting a strain on the health, education as well as food supply. The model of its family planning program is that the women themselves are expected to seek services of family planning program. In 1990’s, there was a declining Population growth rate and is now under 2% as compared to 3 % in 1980’s. Population growth and economic development has a negative relationship. Following table will provide a comparison of Population growth rate of Pakistan with some major countries of the World: Following table will provide the Population Distribution of Pakistan in all the provinces: Following table will provide a comparison of Pakistan Population growth rate in past years: Article 1: Population Growth and Development Prospects of Pakistan by Fakhari A. Siddiqui. You can view our terms of use here. If you need assistance with writing your essay, our professional essay writing service is here to help! Afzal, M (2009) In his article âPopulation Growth and Economics Development in Pakistanâ analyzed the relationship for the year 1951-2001, the OLS estimation result conclude that Population tend to have a negative relationship in the case of Pakistan and causing a major problem in the road of growth. *You can also browse our support articles here >. In India, annual growth rate of population is 1.8 percent and capital output ratio is 4:1. The existing state of knowledge does not warrant any clear-cut generalization as to the effect of population growth on economic development in today's less developed areas. According to survey of 1994, it is estimated that Pakistan will be the 3rd largest country with respect to population by the year 2050. affects economic growth of Pakistan. They highlighted that when human capital and physical capital are substitute, the increase in population have a negative impact on economic development. It was planned that several workers will be hired and trained for the purpose to provide services in their own villages and community. Increase in population also effects the environment and due to this urban slum also increases. Thus, more recent economic survey of Pakistan (2016-17), and (2018-19) giving more prominence to population growth study, reported that Reduction in total fertility and infant mortality rate will help economic growth to increase in the positive direction. Around 60% of total Population resides in rural areas of Pakistan. According to a study by Rashid Amjad, Pakistan need to create 2.3 jobs every minute to provide employment opportunities to the people of Pakistan. With lower population growth you can expect there to be a lot less younger people and a lot more older people over time. Average annual real GDP growth rates were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. Pakistan is an Islamic state. In the next paragraphs we will review some of previous studies related to the effect of economic growth, CO 2 emissions, … 1250 family welfare centers were setup by the government and with the help of NGO’s to control Population growth. Government also laid great emphasis on the use of contraceptive methods for birth control. High Population growth rate is a burden on economy of the developing country. Excessive population growth negatively affects the agriculture as agricultural land is consumed for residential purposes. Population growth (PWT). You can view our. As a result, they used the Johansen Co-integration to check for long run relationship between the variables. It is the real power and strength of a country. Family Planning program of Pakistan’s Government was not effectively managed and did not derive any results in decreasing the Population growth rate. Due to lack of education, religious customs and women status and power in society have decreased the motivation of women to control fertility. Hº : There exists a negative relationship between population growth and economic development. ALTERNATIVELY, there are more mouths to feed which effects the standard of living. Suppose the economy used to have productivity growth of 3%. By the end of 1980’s, total afghan refugees in Pakistan were 3.2 million which hurt Pakistan a lot; both economically and socially. The climate of a region can affect the types of exports the region can provide. Iqbal Mahmood, M. E. (2011). Two general schools of thought surround the perceived effects of population growth. The results show that one percent increase in FDI will raise GDP by 0.37%. This leads to misuse or overuse of natural resources. That's why Nigerian couples are advised to take steps to reduce the number of children being born! the inter-relationship between demographic variables and economic growth in Pakistan. ANTIMICROBIAL ACTIVITY OF SILVER NANOPARTICLES BASED ON THEIR SHAPES, A Clockwork Orange (Burgess) and The Butcher Boy (McCabe), Impact of racial stereotypes/racism on, self-esteem amongst African-American students regarding standardized testing. More population guarantees more consumption. Pakistan has failed to provide basic necessities such as education, employment and health services to its people and the reason behind these problems is the high population growth rate. An aging population coupled with a declining birth rate points to a decline in economic growth. The main objective of this paper is to examine the effect of population growth on the economic development of Pakistan. Macroeconomic variables and FDI in Pakistan . Pakistan has the highest population growth rate in the world. Wang and Blomström (1992) found that FDI flows have a significant effect on the economic growth and it acts as a driving force in the economic growth process. Pakistan's average economic growth rate in the first five decades (1947–1997) has been higher than the growth rate of the world economy during the same period. If growth is too far beyond a healthy growth rate, it overheats. In our model, population growth, unemployment Rate and Investment are the Independent Variables. An Environmental Kuznets Curve Ball. Excessive population growth hurt the ecosystem as more and more people depend on land chances eco-damages increases. The academic literature, however, finds different effects of corruption on economic performance. 5) Population Growth and Standard of Living, as increase in population leads to more consumption. The main reason for high Population growth rate was high fertility. Does the age structure of a anon262531 April 20, 2012 . There are many problems which may occur if population is not controlled by the respective Government. Meneu and Climent (2003) studied the relationship for Spanish economy between demographic economic variables for the year 1960-2000. The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies. Among many reasons, high fertility rate is one of the most major and important cause which contribute to high population growth of Pakistan. food, water, electricity) and jobs. anon329865 April 12, 2013 . Pakistan has a population of 165 million in 2006 and is the seventh largest populated country in the world. EssaySauce.com is a free resource for students, providing thousands of example essays to help them complete their college and university coursework. NGO’s should go to females in rural areas of Pakistan door-to-door and make them aware of the use of condoms and birth control pills. For example, if one doctor attends more and more patients, similarly in other fields also. The resources of the developing country are very scarce and it is difficult to meet the needs of every individual living in developing countries. Population growth affects the living standard of the people as increase in population leads to more consumption. Download the full version above. Increase in population will also increase the problems. Growth model as we know that per capita income and population growth by! Services though community based family planning program but failed to control growth of.... Does population growth doesnât really impact the economic development these changes raise a number children... Be taken out list of most populous countries, Pakistan ’ s to 2010. the inter-relationship between demographic economic for! The contribution of population to 2006 of a common man a new scheme was introduced to offer services though based! 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