Population growth and standard of living: A threshold regression approach

Fumitaka Furuoka and Qaiser Munir ()

Economics Bulletin, 2011, vol. 31, issue 1, 844-859

Abstract: This study employs Hansen's (2000) threshold regression analysis to examine the relationship between population growth and per capita GDP in 117 countries. Threshold regression analysis allows controlling the quality of population when examining the relationship between the quantity of population and per capita income in a country. The paper uses Human Development Index (HDI) value as the threshold regression variable. In the course of the analysis, a sample of 117 countries was split twice and separated into four sub-samples. The threshold regression analysis revealed that there was a significant negative relationship between population growth and per capita GDP only in the countries with a low level of human development. In other words, quantitative expansion of population would have negative impact on standard of living only in the countries with low quality of population. The empirical findings of this paper support a proposition that the quality of population aspect should be included in the debate on the relationship between population expansion and economic development.

JEL-codes: O1 (search for similar items in EconPapers)
Date: 2011-03-17
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