Negative Effects Of Population On Economic Growth

Where g is increasing firstly if birth rate increases with consumption per capita, people will have more children by choice, they are better able to provide for children and better nutrition increases fertility. Secondly, death rate decreases with consumption per capita. Decreases infant mortality and population more healthy, increasing the average lifespan.

The above figure show population growth is higher the higher is per-capita consumption. Malthusian indicates that when population increases, land will reduce due to the limited land.

The debate of between positive and negative effects of population on economic growth is being ongoing of issues either population is beneficial or deteriorates to economic growth in developing countries.

In Malthusian growth model, the increases of population will reduce income per capita. China with 1.4 billion people enjoys the factor endowment namely large labor force but standard of living is low because the increasing of expenditures to improve infrastructure, education, health care and so on. Higher population will result on slower economic growth. So, population growth expected to have negative impact on economic growth.

Human capital is the skills, knowledge and experiences possessed by people that view in term of value to an industry and country. Human capital can be increased by education or training to make people more productive. Education is connected with fertility rate, income, and technology. High level of education tends to delay marriage which reduces fertility to increase skills then become productive labor that effect growth. Human capital expected to have positive impact on economic growth.

Investment is the investing of money or capital in order to gain profitable return as interest, income or appreciation in value. China more focuses on FDI to attract more investor and become second largest FDI recipient after United States. China’s FDI inward receive by Hong Kong is the largest which is 71.7% or 128, 500 million USD (Invest in China, 2014) while FDI outward is 0.8% (OECD, 2014) or 116,000 million USD (UNCTAD, 2015). Investment expected to have positive impact on economic

The reasons why we use China as my sample country because China is the largest population in the world and followed by second highest population is India. China roughly has the population around 20% of the world’s population as ratio one person in every five person on the planet is resident of China. Based on 2010 census data, there are 31 regions in China with population of one million peoples. Confidently, the increase of population is either positive or negative impacts on economic growth in China. That’s why we decided to choose this country as our sample of study. The specific objective of this study is that to focus on the key role play by the population increase on economic growth particularly in China. Furthermore, to get a clearer view of this study, the determinants are set to see the relationship between the dependent and independent