Positive Population Growth

First and foremost, it is generally believed that a nation with a positive population growth has the ability to avoid it from suffering ineffective state of economy (Easterlin, 1967; Simon, 1981). It means that the nation will have a greater chance to achieve an “economics of scale” sate which in turn contributes to the increase in nation productivity (number of output per unit of labor). A country with a rapid population growth rate will result in a larger population size and will eventually make a larger the market size in that nation. As such, it is important to ensure an effective and great performance to be developed in order to meet the product demand of the large market size. In view of this, there is a tendency for the nation to reduce

It cannot be doubted that, transportation is an important key to lead to an excellent economics development (Simon, 1981). This is due to the fact that a good transportation system will help to reduce the costs and time used to deliver the products to the consumers. In view of the population growth, the rise in population density is unavoidable. Hence, it cannot be denied that this current trend will surely give an impact for the government as they are pressured to contribute more money in transportation system such as highways, LRT, and railroad in order to support the increase in population size. This is crucial for a developing country like Malaysia as the advance in transportation system will help in economy growth as well. Undeniably, sustainable economic development can be achieved if transportation system of a nation is improved in accordance with its growing population

In this case, the government will be going to make more expenditures in building and developing schooling and educational facilities. As a result, this can provide a chance for the government to prevent from merely depending on the investment in other industrials to rise their nation’s overall capital accumulation. In a developing country, a large investment in the education system or facilities will eventually result in the accumulation of human capital with knowledge, competence, and the ability to achieve an efficiency production. Generally, there are two effects caused by human capital on the economic development. In this context, human capital can be widely used to increase the productions and also help in the development of new technology which in turn affect productivity simultaneously. In short, it can be said that the positive population growth will indirectly contribute to the number of outputs produced as the school-age population is increasing with the population