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Long-term effects of population growth on aggregate investment dynamics: selected country evidence for Africa

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  • Simplice A, Asongu

Abstract

The role of Africa in world demographic change is primary and consequences on future investment dynamics could provide some insight on how unemployment, economic migration and other issues resulting there-from could be addressed. Using Johansen and Granger-causality models on data from 1977 to 2007, we investigate long-term effects of population growth on investment. Our study reinforces the lack of consensus over the impact of demographic change on economic growth. Main findings are, in the long-run, population growth will: (1) decrease foreign and public investments in Ivory Coast; (2) increase public and private investments in Swaziland; (3) deplete public investment but augment domestic investment in Zambia; (4) diminish private investment and improve domestic investment in the Congo Republic and Sudan respectively. For policy implications, the positive linkage of population growth to investment growth in the long-term should be treated with extreme caution, unless investment measures are adopted to utilize accruing work force. Family planning and birth control policies could also be considered in countries with little future investment avenues.

Suggested Citation

  • Simplice A, Asongu, 2011. "Long-term effects of population growth on aggregate investment dynamics: selected country evidence for Africa," MPRA Paper 30128, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30128
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    Cited by:

    1. Asongu Simplice, 2012. "Determinants of Health Professionals’ Migration in Africa," Working Papers 12/009, African Governance and Development Institute..
    2. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    3. Simplice A. Asongu & Brian A. Jingwa, 2012. "Population growth and forest sustainability in Africa," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 6(2), pages 145-166.
    4. Akpan, Uduak & Isihak, Salisu & Asongu, Simplice, 2014. "Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT," MPRA Paper 56810, University Library of Munich, Germany.
    5. Asongu, Simplice & Nwachukwu, Jacinta, 2017. "Openness, ICT and Entrepreneurship in Sub-Saharan Africa," MPRA Paper 83070, University Library of Munich, Germany.
    6. Asongu, Simplice, 2014. "Reinventing foreign aid for inclusive and sustainable development: a survey," MPRA Paper 65300, University Library of Munich, Germany.
    7. Simplice Asongu, 2014. "REER Imbalances and Macroeconomic Adjustments in the Proposed West African Monetary Union," South African Journal of Economics, Economic Society of South Africa, vol. 82(2), pages 276-289, June.
    8. Simplice A, Asongu, 2011. "Deforestation and welfare : evidence from Africa," MPRA Paper 35161, University Library of Munich, Germany.

    More about this item

    Keywords

    Productivity; investment; human capital; causality; Africa.;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • J00 - Labor and Demographic Economics - - General - - - General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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