Economic Theories of population growth - 7492 Words

Population Growth and Natural Resources 73 3.2 Economic Theories of Population Growth In this section the demographic transition process observed in the previous section will be examined in terms of economic theories. 3.2.1 The Malthus model Thomas Robert Malthus Â…1766 ±1834† is known as a pioneer in the economic theory of population. His Principle of Population Â…[1798] 1926† was a re ¯ection of England s premiere entrance into the process of modern demographic transition. His population theory may be summarized as follows: as with other animals, human beings have a natural instinct to bear children to a physical maximum; under this ` ®xity of passion people tend to multiply in an exponential rate; where the production of†¦show more content†¦Population Growth and Natural Resources 75 following the Agricultural Revolution. Even if the wage rate per hour may not have increased very signi ®cantly, the household income level increased from increased working hours and employment of females and children. Such a condition induced people in the labour class to marry earlier and produce more children. When this tendency coincided with decreases in the death-rate Â…owing to improved living conditions† the  ®rst population explosion in the epoch of modern economic growth took place in England. Indeed, the way that the birth-rate responded positively to increased income per capita was consistent with Malthus s theory. Such a positive response through adjustments in the marriage age and rate can be universally observed in premodern societies, e.g. Wrigley and Scho ®eld Â…1981† for England, and A. Hayami Â…1992† for Japan. The rising trend of the birth-rate for Phase 1 in England seems to re ¯ect the premodern response to the early phase of industrialization. To predict the future course of demographic changes in developing economies, a more general model should be envisaged that is able to explain both the empirical relevance of the Malthus theory for the early phase and its divergence from reality in the later phase of development. Attempts to build such a model have used an approach of maximizing the utility function common to household members Â…Leibenstein, 1957; Easterlin, 1975;Show MoreRelatedOpositions to Thomas Malthus Theory on Population Growth 694 Words   |  3 PagesPrinciple of Population argued that the increase in population growth would ultimately create social and economic problems for a nation. On the contrary, many famous political economists such as Ester Boserup and Julian Simon suggested different views about population and resource growth; which contradicts the Malthus’ theory. Thomas Malthus’ wrote ‘An Essay on the Principle of Population’ argued that the increasing rate of population growth is the impetus of many social and economic issues thatRead MoreThe Neo-Malthusian Population theory assumes that poor nations will never be able to rise much above subsistence levels unless they engage in preventive population checks, if not positive checks.1445 Words   |  6 Pages  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  As stated the Neo-Malthusian population theory claims that poor nations are stuck in a cycle of poverty which they cant get out of unless some sort of preventative measures of population checks are engaged. The Malthusian model was developed two centuries ago by a man named Thomas Malthus. Malthuss model is based upon a relationship between both population growth as well as economic development. Empirical studies now-a-days show that the population theory model is quite flawed because of manyRead MoreThe Theory Of Economic Growth Theory1 703 Words   |  7 PagesLiterature review As an important and popular issue in the field of economic research, it attracts many economists and there are many models to explain economic growth. In the history of the development of economic growth theories, there are three important stages which are the Classical Growth theory, the Neoclassical Growth theory and the Endogenous Growth theory. To start with, the Classical Growth theory is based on the Keynesian theory and the representative one is the Harrod–Domar model. It was putRead MoreWhy Are Some Countries Rich While Others Poor?1502 Words   |  7 Pagesothers poor. This is a question about economic growth. Take Korea for example. Korea had been divided into North and South Korea since 1948. These two countries share nearly the same geography, history and culture. However, the GDP per capita in the South Korea is only 3.22% of the South Korea. Another phenomenon is that the rapid growth had been observed in East Asian in recent years. This is another key economic issue: whether the growth rate of poor economics are higher than developed ones and whichRead MoreChinese Economic Development And Structure Problem986 Words   |  4 Pages Chinese economic development and structure problem Key question: China s economy, (China s economic have increased of Efficiency Analysis .) China s economic high speed growth can be remained? PESTEL China s economic have increased of Efficiency Analysis . After Chine revolution , Chinese economic have increase very fast , take GDP for a example,after economic revolution , about annual growth rate have keep or more than double-digit , this is very crazy. However ,according to the explainRead MoreAn Evaluation Of The Economic Benefits And Ethical Issues Of Population Control1474 Words   |  6 PagesWorking Title Population control: an evaluation of the economic benefits and ethical issues of population control through the use of eugenics Background The topic of population has been prevalent in the study of economics but particularly since Thomas Malthus published his book ‘Essay on the Principle of Population’ (1798). Malthus was the first economist to propose a systematic theory of population. Malthus proposed in his book that humans grow exponentially whereas the food supply grows atRead MoreThe Analysis Of Savings Attitude Will Be Discussed From Two Approaches Macroeconomic And Microeconomic Essay928 Words   |  4 PagesThis section discusses some theories and models that highlights on savings. The analysis of savings attitude will be discussed from two approaches: macroeconomic and microeconomic (household) perspectives. The macroeconomic methodology concerns itself with the influence of economic indicators such as GDP growth rate, rate of inflation, money supply, interest rate, etc., on the saving rate in an economy. At the micro level, individual saving and consumption attitudes, particularly households, haveRead MoreNeo Classical Model1134 Words   |  5 PagesNeo classical theory: An economic theory that outlines how a steady economic growth rate  will be accomplished with the proper amounts of the three driving forces: labor, capital and technology.  The theory states that by varying the amounts of labor and capital in the production function, an equilibrium state can be accomplished. When a new technology becomes available, the labor and capital need to be adjusted to maintain growth equilibrium. This theory emphasizes that technology changeRead MoreThe Effects Of Population Growth On The Steady State Of The Solow Growth Model1502 Words   |  7 Pages The effects of population growth on the steady-state of the Solow growth model INTRODUCTION As the creation of neo-classical economic growth model pioneer, Solow growth model creates a new breakthrough in terms of the theoretical model in the reality and plays an important role in study in long-run economic growth model. The main purpose of this paper is to discuss the effects of population growth on the steady-state and growth rates of the Solow growth model. The structure of this essay isRead MoreEssay on Economic Growth and Development894 Words   |  4 PagesEconomic growth is a necessary but not sufficient condition of economic development. There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro: ‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re orientation of the entire economic and social system. Development is a process of improving the quality