Population Growth And Economic Growth

1132 Words3 Pages
bulb-icon

Recommended: Causing factors in economic growth

Factors such as population growth, technological innovations and availability of natural resources can contribute to increase the productivity and economic growth (Pritchett, 1996; and Basu et al., 2001). Population growth (measured by rate of population growth) can be the driver of economic growth through increasing the demand for all kinds of goods and services (more people will inject liquidity into the economy through buying necessities or commodities). Technology consists of the knowledge of how to transform basic inputs into final product (Howitt and Weil, 2010, p.44). So, If the country has abundant natural resources and the technology, it can support a larger population demand and different economic sectors will grow. Technological …show more content…

For example, Cameron (1998) concluded that innovation makes a significant contribution to growth and Fagerberg et al. (2009) found that innovation to be a powerful force of growth. In addition, Crosby (2000) employed Fisher and Seater (1993)’s long-run neutrality (LRN) test to examine the long-run effect of innovation on growth in Australia. He found a positive role for innovation as a long-run output driver. Furthermore, a more recent Taiwanese study by Yang (2006) followed a similar procedure and found that innovation played a positive role in economic growth in both the short and long-run. Whereas, natural resources ought to be utilized for realization of the benefits of the people in the country in which they are found. This right of the people to enjoy benefits of natural resources found in their country has been sanctioned by UN resolutions 626 (VII) of 1952 and 1803 (XVII) of 1962, which states that states and their people have permanent sovereignty rights over natural resources found in their countries. The availability of natural resources allows a nation to produce material goods for its own use or foreign trade. In addition, it has been counted as an advantage and plays an important role in many countries economic growth and …show more content…

Different literatures found that over the long haul, countries and regions with an abundance of natural resources, specifically non-renewable resources like minerals and fuels, tend to have negative repercussions in economic, political and social outcomes -including poor economic performance, low levels of democracy, and civil war and conflicts- than countries with fewer or without natural resources (Sachs and Warner, 1995, 1997c, 1999a; Rodriguez and Sachs, 1999; Leite and Weidmann, 1999; Gylfason, 2000, 2001b; and Elsgard, 2014). This phenomenon called the paradox of abundance or “resource curse”. The next section is devoted-to discuss the theory of resource curse and its causes in

Show More
Related

  • Sustainability Essay

    803 Words  | 2 Pages

    The measure of growth is flawed, how countries see their growth is based on the consumption of their people. Many countries use the GDP (Gross Domestic Product) as an indicator for growth, as defined in It’s All Connected, “(GDP) is a calculation of the total monetary value of goods and services produced annually in a country” (Wheeler 11). The...

    Read More

  • A Comparison Of The Economies Of Japan And China

    1310 Words  | 3 Pages

    Civilizations that have a great deal of land and a strong military tend to have strong economies. Japan in the 1800s is a perfect example of how economic growth can change the course of a nation for the better, by increasing its land and armed forces. China in the nineteenth century is an excellent illustration of how a declining economy can destroy a civilization, by taking away its land and decreasing its military strength. These two civilizations clearly demonstrate how economic growth can influence all aspects of society.

    Read More

  • Why Are Some Countries Richer Than Others?

    1486 Words  | 3 Pages

    Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.

    Read More

  • PESTLE Analysis Approach To The Oil And Gas Industry

    729 Words  | 2 Pages

    Due to the presence of natural resources a country may be subjected to Geopolitical fights and

    Read More

  • The Effects of Population Growth in China

    1744 Words  | 4 Pages

    Thesis statement : Since the population has grown rapidly since in the past Fifty (5) years, how did the Chinese government deal with the population explosion in the past and how will they deal,with it in the future?

    Read More

  • Growth Of Human Population

    1596 Words  | 4 Pages

    The human population growth rate is an alarming issue that brings with it irreversible consequences, that will likely effect the way of life for future generations to come. With the serious incline in population statistics comes catastrophic processes such as global warming and deforestation that have major ‘knock on’ ramifications. It’s issues such as these that need to be considered when we think about the growth of the human population, and we must take into account why these issues are occurring. We must also explore the options available to us that may assist in limiting the problems, or eliminating them all together, to provide a better place, not only for us in existence now, but also those who will walk this earth in the future decades and centuries to come.

    Read More

  • Essay On Resource Curse In Nigeria

    1425 Words  | 3 Pages

    The question to be answered in this paper is to what extent has the resource curse affected the Nigerian economy and government? Resource curse is a term that states the observation that countries that have a plethora of natural resources (e.g. oil, coal, diamonds etc.). usually have unstable political and economic structures (Sachs, 827). Nigeria is categorized as a nation that has succumbed to the resource curse as it has an abundance of, and an overdependence on, oil, and a decreasing gross domestic product (GDP) (Samuels, 321-322). Nigeria is known for its specialization and overdependence on oil and according to Ross, nations of such nature tend to have high levels of poverty, large class gaps, weak educational systems, more corruption within the government, and are less likely to become democracies (Ross, 356).

    Read More

  • Comparative Economics: U.K. vs. Japan

    1870 Words  | 4 Pages

    The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues. I feel that economic growth is the main indicator of economic success. Additionally, innovations in technology, improving human capital, and improving foreign direct investment (FDI) are three issues that can lead to economic growth.

    Read More

  • Population Growth, Industrialization, and the Environment

    1509 Words  | 4 Pages

    Human population growth was relatively slow for most of human history. Within the past 500 years, however, the advances made in the industrial, transportation, economic, medical, and agricultural revolutions have helped foster an exponential, "J-shaped" rise in human population (Southwick, Figure 15.1, p. 160). The statistics associated with this type of growth are particularly striking: "Human beings took more than 3 million years to reach a population of 1 billion people...The second billion came in only 130 years, the third billion in 30 years, the fourth billion in 15 years, the fifth billion in 12 years..." (Southwick, p. 159). As human population has grown, there has been simultaneous growth within the industrial sector. Both of these increases have greatly contributed to environmental problems, such as natural resource depletion, ecosystem destruction, and global climate change. Also linked with the increasing human population are many social problems, such as poverty and disease. These issues need to be addressed by policy makers in the near future in order to ensure the survival and sustainability of human life.

    Read More

  • The Relationship Between Economic Growth and Environmental Protection

    1701 Words  | 4 Pages

    In traditional opinions, environmental protection and economic growth are mutually contradictory. Economic growth is a high environmental cost, and protecting the environment will limit the economic growth. The reason of contradiction stems from the inappropriate understandings among development, economic growth and environmental protection. In fact, economic growth could have a harmonious relationship with environmental protection.

    Read More

  • What is Political Ecology?

    845 Words  | 2 Pages

    Political ecology also involves conflicts between people and institutions over resources, in both developed world and developing world contexts. The use of natural resources and the creation of a sustainable environment is a critical issue that must be observed from different perspectives. Does it permit sustainable resources? Is it a threat to local security? How is income distributed through societies, both gender and location wise? Who decides how these are to be classified? These are key problems in political ecology.

    Read More

  • Economic Growth and Development

    884 Words  | 2 Pages

    It is natural to be misled by the idea that economic growth is the key

    Read More

  • An Analysis of Why Nations Fail

    894 Words  | 2 Pages

    Why Nations Fail takes an in depth look into why some countries flourish and become rich powerful nations while other countries are left in or reduced to poverty. Throughout this book review I will discuss major arguments and theories used by the authors and how they directly impact international development, keeping in mind that nations are only as strong as their political and economical systems.

    Read More

  • The role of culture in the economic development of countries

    3230 Words  | 7 Pages

    Economic development is fundamentally about enhancing the factors of productive capacity, such as land, labor, capital, and technology, of a national, state, or local economy, as stated by the U.S. Economic Development Administration. Economic development influences growth and restructuring of an economy to enhance economic well-being. We experience economic growth when our standard of living is rising. Rather than being a simplistic process, economic development typically is a range of influences aimed at achieving objectives like creating jobs and wealth and improving the quality of life. It incorporates coordinated initiatives targeted at expanding infrastructure and increasing the volume and/or quality of goods and services produced by a community. A common measure of economic development is a country’s gross national ...

    Read More

  • Nigeria Economic Development

    1076 Words  | 3 Pages

    Economic development has a direct relationship with the environment. Whereas economic development is a policy intervention endeavour with aims of economic and social well-being of the people, economic growth is a phenomenon of market productivity and rise in GDP. According to them, the first chain consists of economic growth benefiting human development, since economic growth is likely to lead families and individuals to use their heightened incomes to increase expenditures, which in turn furthers human development. At the same time, with the increased consumption and spending, health, education and infrastructure, systems grow and contribute to economic growth.

    Read More

More about Population Growth And Economic Growth

Open Document