Population Growth, Life Expectancy and Economic Growth: A Panel Data Analysis

Keywords: Economic Growth, Life Expectancy, Population, Pooled Mean Estimator, Panel Data


Over the years, quite a number of studies have investigated the apparent relationship between demographic factors and nations’ economic performance. However, these investigations have turned out diverse outcomes. This study therefore, contributes to the debate by examining the effect of population growth and life expectancy on economic growth using one hundred selected countries sub-grouped into very high income, high income, middle income and low income. The data set range from 2002 to 2017, and are sourced from the World Bank database. The variables engage include growth rate of real gross domestic product, gross fixed capital formation, life expectancy and population growth. The data are analysed using Imp, saran-Shin unit root technique, Kao cointegration test, Hausman test and pooled mean group (PMG) estimator to ascertain the stationarity of the variables, long run relationship, as well as the short run and long run unweight average of the individual nations. In sum, the PMG result reveals that, life expectancy, population growth and gross fixed capital formation, significantly predict economic growth in the long-run. Even so, both life expectancy and population growth rate negatively influenced economic growth. The implication of this is that, the two demographic factors are inversely associated with growth rate of gross domestic product in the sampled countries. The study therefore, recommends the need for sound policies initiation that will address these demographic variables changes to support economic advancement in the studied nations.


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