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The Impact of Population Growth on the Economy of Countries

The relationship between population growth and changes in the economy are examined for 94 countries for the 1955-1971 period. Each of the 94 countries for which data are used had a population of at least 1000000 people in 1971. The countries are divided into 3 subgroups: those with high medium and low levels of per capita gross national product (GNP) in 1955. There is a lack of research that analyzes this subject using regression and correlation analysis for a large number of countries. The independent variable used in this study is the percentage change in the national population size between 1955 and 1971. Percentage change in various economic and demographic variables over the same period constitutes the dependent variables. Measuring all variables in terms of percentage changes yields a uniform interpretation of the unstandardized regression coefficient. Data has been obtained from United Nations sources. A 1-tailed significance test is used since the prediction is made that rapid population growth is inversely related to change in all indicators of economic prosperity. The bulk of the evidence reveals that rapid population increase had a negative impact on changes in many crucial economic indicators during the 1955-1971 period. Indicators such as change in per capita gross capital formation government consumption manufacturing and exports are each correlated to change in per capita GNP at .75 or higher.