negative effects of population growth on economic development

negative effects of population growth on economic development

9. Population may be considered positive hindrance in the way of economic development of a country. Therefore, the volume of such investment is determined by the rate of population growth in an economy. The effect of population growth can be positive or negative depending on the circumstances. Environmental degradation harms human health, reduces economic productivity and leads to the loss of amenities. Population decline has many potential effects on individual and national economy.The single best gauge of economic success is growth in GDP per person, not total GDP. Negative Effect: Population growth has a negative effect on growth for the following three reasons: (i) Capital shallowing: 2. This paper studies the different mechanisms and the dynamics through which demography is channeled to the economy. It leads to the cutting of forests for cultivation leading to several environmental change. One of these economists is Thomas R Malthus. Privacy Policy3. the interaction of economic growth with population dynamics can result in a poverty trap. A constant society, with little transition in economic growth and development, is likely to feel a stronger pinch of the population increase on the economy. Environment Rapid Population Growth Leads to Environmental Damage 12. Exogenous drivers include population growth, economic development, technical change, and two alternative deforestation policies. Some economists have estimated that for maintaining the present level of per capita income, 2 per cent to 5 per cent of national income must be invested if population grows at 1 per cent per annum. All Rights Reserved. Firstly, inadequate supply of food leads to undernourishment of the people which lowers their productivity. Rapid growth of population directly effects per capita income in an economy. Population can be a limiting factor to economic development because of the following reasons: 1. Population growth, inequality and economic development are among the most pressing social issues confronting us today. As a result these economies suffer largely for want of improved farm techniques and ultimately become the victim of the vicious circle of poverty. Per capita availability of land for cultivation declined from 1.1 acre in 1911 to 0.6 acre in 1971 in our country which makes the size of holdings very small. 3. ©2000-2020 ITHAKA. It further reduces the production capacity of the workers, Secondly, the deficiency of food compels to import food grains which places as unnecessarily strain on their foreign exchange resources. No improvement in agricultural and industrial technology, shortage of essential commodities, low standard of living, mass unemployment etc. The excessive population growth is an obstacle in the way of attaining self or reliance because it obliges us to importance and more food articles in order to meet the needs of increasing millions and on the other hand, it cuts down export surplus heavily. This is important obstacles to development. What are the effects of economic development in Nigeria on quality of life? In these countries, population is increasing at the rate of about 2.5 per cent per annum and 5 per cent to 12.5 per cent of their national income and hence the entire investment is absorbed by demographic investment and nothing is left for economic development. 14. With sustained growth and rapid growth though there is a risk of overpopulation. Effects. Overuse of Resources: Rapid population growth tends to … Request Permissions. The Annals of the American Academy of Political and Social Science, Read Online (Free) relies on page scans, which are not currently available to screen readers. Population reduces the Rate of Capital Formation: In underdeveloped countries, the composition of population is determined to increase capital formation. Examples include corrections when the rapid growth may actually supply a population that wouldn't have existed to contribute otherwise. economic development. Moreover, as Figure 1 illustrates, the simple cross-sectional relationship between population growth and economic growth is clearly negative when viewed over the long run (i.e. Issues to do with pressure on the existing amenities and resources will, likely, to come into play. Thus, the aim of self reliance cannot be achieved without controlling the population. Growing Population lowers Standard of Living: The standard of living is determined by their per capita income. It leads to congestion and moreover to reduction in land available for farming as well as for building houses, factories, hospitals, shopping centres, educational institutions, roads and railway tracks etc. Format: PDF and MS Word (DOC) pages = 65 ₦ 3,000 Declining trend of Agricultural Development: In less developed countries, mostly people live in rural areas and their main occupation is agriculture and if the population increases the land-man ratio disturbed. The relationship between population growth and economic development has been a recurrent theme in economic analysis since at least 1798 when Thomas Malthus famously argued that population growth would depress living standards in the long run. Economic Growth. Malthus’s prediction is that population increases so rapidly and outstrip the food supply due to the Over periods, the arguments about positive and negative effects of population on economic development are still complicated problems for most of the economists. Journal of health economics, 20(3), 423-440 . To overcome the demographic transition stage, it is essential for less developed countries to bring down their fertility rate. For terms and use, please refer to our Terms and Conditions One of these economists is Thomas R Malthus. Share Your PPT File, Composition of Human Investment and Its Significance. Each issue of the Annals of the American Academy of Political and Social Science, guest edited by scholars and experts in the field, presents more than 200 pages of timely, in-depth research on a significant topic of interest to its readership which includes academics, researchers, policymakers, and professionals. Fast growing population has led to food shortage. Such contradictory findings have led several analysts to consider the possibility that the impact of population growth on per capita output growth may not be uniform … The low farm productivity has reduced the propensity to save and invest. This brings the standard of living low. With a personal account, you can read up to 100 articles each month for free. Problem of Increasing Food Supply: We require food for existence. Read your article online and download the PDF from your email or your account. In less developed countries the majority of population lives in, where agriculture is their mainstay. In most developing countries population is growing steadily even today. Despite all their efforts for raising agricultural production, they are not able to feed their growing population. He concludes that up to some extent population growth is good but large population puts pressure on resources within the economy. Effects of population growth on economic development in developing countries Prof. Trusha P. Gajjar Lecturer at Navyug Commerce College Abstract: The main aim of this work is to find the effects of rapid population growth on economic development in India. Thus, the consequence of population growth is to lower the standard of living. A rapidly growing population increases the requirements of demographic investment which at the same time reduces the capacity of the people to save. Abstract. The findings shows that population pressure has a negative impact on food production ca'fTV-i ty, land sizes and the economic status of the community. With an increase in the number of individuals for few jobs, the competition rises and … They also shows that the population pressure diminishes fuel wood and clean wafer supply. Some theoretical analyses argue that high population growth creates pressures on limited natural resources, reduces private and public capital formation, and diverts additions to capital resources to maintaining rather than increasing the stock of capital per worker. Welcome to EconomicsDiscussion.net! Growth and the Environment: The Sustainability of Economic Growth. Consequence # 2. Many studies have sought to gauge the impact of population growth on economic growth. Population growth, even rapid population growth, can be a positive thing. Higher Rate of Population requires more Investment: In economically backward countries, investment requirements are beyond its investing capacity. Although many people remain poor, particularly in Nigeria’s rural north, its Human Development Index (HDI) has increased steadily since 2005 from below 0.47 to 0.532. Check below to review some of the positive and negative effects of population growth. Population reduces the Rate of Capital Formation: In underdeveloped countries, the composition of population is determined to increase capital formation. by (Reich, 2010), that economic growth leads to prosperity in the developed, emerging and developing world. 10. In Africa, female education is an important driver of fertility decline, and a policy of expanding female education will have large fertility and economic growth effects (Canning, Raja, and Yazbeck 2015). This results in polluted air, water, noise and population in big cities and towns. Next time: Can economic history settle the debate between demographers and economists? This also leads to the occurrence of disguised unemployment and underemployment in the agricultural sector. It reduces per Capita Availability of Capital: The large size of population also reduces per capita availability of capital in less developed countries. 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. 1. Agricultural and industrial development along with urbanisation and spread of infrastructure combined with population growth has led to environmental degradation. option. The variables of … Bloom, D.E. Consequence # 1. Population. 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And underemployment in the developed, emerging and developing World and industrial development along with urbanisation and of... Growth on the actual experience of nations, currently and in the past, and two alternative deforestation..

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