Effects Of Population Growth On Economic Growth

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Population growth of a country can be calculated by calculating the difference between the sum of birthrate and immigration with the sum of death rate and emigration. It is the rate of increase of population with respect to time. World population increase exponentially instead of constantly. For example the number increase from (1, 2, 4, 8, 16…..) instead of (1, 2, 3, 4, 5…..). Exponential population growth rate is a major world issue in the long run. This is because we will use up natural resources much faster and we eventually have to find alternatives or else earth will become inhabitable. Not forgetting to mention the clearing of forest for land and the increase of factory due to the increase in demand. Despite the disadvantages exponential population growth have on the world, there are advantages it can do to a country like for example boosting the economic growth of the country.…show more content…
The first theory is that the population growth is directly proportional to the economic growth. Second theory being population growth has no effect on the economic growth and lastly population growth is inversely proportional to the economic growth. For Singapore, the first theory is true. Since independence, Singapore population has increased by 3.5 million and the Gross Domestic Product (GDP) per capita increased from 516 USD in 1965 to 56,286 USD in 2014.
For a small and developing country like Singapore in the early stage, population growth is important. The increase in population growth in a country would increase demand for goods and services in the country. This creates a market for foreign investors to invest in the country, bringing wealth and boosting the economy. As standard of living is closely related to the wealth of each individual and the wealth of the country, when the country is evolving at a fast pace, the standard of living gets better in that
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