Population Growth and Economic Development: Test for Causality

Khalid Mushtaq ()
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Khalid Mushtaq: Assistant Professor in the Department of Agricultural Economics, University of Agriculture, Faisalabad, Pakistan.

Lahore Journal of Economics, 2006, vol. 11, issue 2, 71-77

Abstract: This paper examines the existenceof a long-run relationship between population and per capita income in Pakistan for the period 1960-2001 using cointegration analysis. Unit root results show that population is integrated of order zero while per capita income is integrated of order one; further, Johansen’s procedure showthat no long-run cointegrating relationship exists. Thus, population growth neither causes per capita income growth nor is caused by it. A corollary is that population growth neither stimulates per capita income growth nor reduces it.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:lje:journl:v:11:y:2006:i:2:p:71-77

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