Population growth and standard of living: A threshold regression approach
This study employs Hansen's (2000) threshold regression analysis to examine the relationship between population growth and per capita GDP in 117 countries. Threshold regression analysis allows controlling the quality of population when examining the relationship between the quantity of population and per capita income in a country. The paper uses Human Development Index (HDI) value as the threshold regression variable. In the course of the analysis, a sample of 117 countries was split twice and separated into four sub-samples. The threshold regression analysis revealed that there was a significant negative relationship between population growth and per capita GDP only in the countries with a low level of human development. In other words, quantitative expansion of population would have negative impact on standard of living only in the countries with low quality of population. The empirical findings of this paper support a proposition that the quality of population aspect should be included in the debate on the relationship between population expansion and economic development.
Volume (Year): 31 (2011)
Issue (Month): 1 ()
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References listed on IDEAS
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- Thirlwall, A P, 1972.
"A Cross Section Study of Population Growth and the Growth of Output and Per Capita Income in a Production Function Framework,"
The Manchester School of Economic & Social Studies,
University of Manchester, vol. 40(4), pages 339-56, December.
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- Alberto BUCCI & Davide LA TORRE, 2007.
"Population and economic growth with human and physical capital investments,"
Departmental Working Papers
2007-45, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Alberto Bucci & Davide Torre, 2009. "Population and economic growth with human and physical capital investments," International Review of Economics, Springer, vol. 56(1), pages 17-27, March.
- Stephan Klasen & David Lawson, 2007. "The Impact of Population Growth on Economic Growth and Poverty Reduction in Uganda," Departmental Discussion Papers 133, University of Goettingen, Department of Economics, revised 25 May 2007.
- repec:ebl:ecbull:v:15:y:2007:i:8:p:1-7 is not listed on IDEAS
- John Thornton, 2001. "Population Growth and Economic Growth: Long-Run Evidence from Latin America," Southern Economic Journal, Southern Economic Association, vol. 68(2), pages 464-468, October.
- Frederic Tournemaine, 2007. "Can population promote income per-capita growth? A balanced perspective," Economics Bulletin, AccessEcon, vol. 15(8), pages 1-7.
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