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Population Growth VS GDP

In Population Growth VS GDP Assignment we discuss about the population growth rate as compare to growth rate percentage .The hypothesis under consideration is “Developing countries that showed a substantial decline in population growth rate are richer now than countries where population growth rate is still high”. The hypothesis is a logical conclusion based on the fact that high population growth rate means that the GDP of the country gets divided among more number of people and thus causing each individual getting less income. Solow model of population growth rate also suggests that the countries which have higher population growth rate tend to have lower GDP per capita and thus are poorer while the countries which have low population growth rate tend to have high GDP per capita and thus are richer. This means that the countries which have high population growth rate should be poorer when compared to countries in similar economic position with lower population growth rate (Barro 2000, pp. 34-46). The relevance of this statement is more for the poor countries as they generally have lower GDP per capita and high population growth rate. With reduction in population growth rate the change in the GDP per capita is thus more visible since the GDP per capita is lower. However another school of thought suggests that GDP per capita remains lower due to high population growth rate only for some time. As the high population growth rate leads to more workforce and human capital for a country which after some point tends to increase the GDP of the country leading to more GDP per capita. This argument also has its backing with practical evidences.

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