Volume 8, Issue 4, August 2019, Page: 180-191
The Stability of Population and GDP Growth: A Comparative Analysis Among Different Nations in the World
Aoulad Hosen, Department of Economics, National University, Gazipur, Bangladesh
Received: May 16, 2019;       Accepted: Jun. 18, 2019;       Published: Jul. 2, 2019
DOI: 10.11648/j.ijber.20190804.13      View  93      Downloads  49
Abstract
The relationship between population growth and economic growth appeared differently in different countries. It became a debated issue for one country group from another where each country group classified by their income level. This article draws on data of forty countries that is twenty seven years long with each income group consists of ten countries. For panel data analysis the study introduces some econometric tests such as Unit root test, Country Pedroni (2004) cointegration test, Phillips-Peron cross section test, Johansen normalized cointegrating tests and Vector error correction test. The outcome states that in low income countries both variables are in equilibrium and reveals positive relationship. By one percent rise in the growth of population, in the long run, for high income and upper middle income countries the growth rate of GDP will drop by 1.19 percent and 0.044 percent respectively. Meanwhile, significant positive results come from lower middle income and low income countries which were the growth of GDP upswing by 0.44 percent and 0.42 percent respectively by the one percent increase in the growth of population. In high income countries, growth of GDP falls due to rise of the growth of population but the growth of population needs 1.47 year to reach to the equilibrium.
Keywords
GDP Growth, Population Growth, Income Groups, Panel Data
To cite this article
Aoulad Hosen, The Stability of Population and GDP Growth: A Comparative Analysis Among Different Nations in the World, International Journal of Business and Economics Research. Vol. 8, No. 4, 2019, pp. 180-191. doi: 10.11648/j.ijber.20190804.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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