This study aims to test the Malthusian and Kremer theories by exploring the relationship between population and economic growth in a low middle-income economy of India.
The autoregressive distributed lag approach is employed based on the nature of time-series data to achieve the study objectives. In this study, regressand is economic growth measured by real GDP, and the regressors are population growth rate, investment, life expectancy and inflation rate from 1980 to 2018.
Empirical results confirm the applicability of Kremer’s theory. In this theory, population growth has a significant and positive impact on economic growth in the short and long run. Moreover, investment and life expectancy variables have a positive and significant impact on economic growth, whereas inflation rate has a negative association with economic growth. Empirical results support the population-growth-driven economic growth hypothesis, which indicates that population growth stimulates economic growth and development.
Empirical findings in this study provide guides for management authorities in formulating the right and relatable policies on population growth whilst promoting economic growth and social welfare.
Achieving a desirable level of economic growth is the prime objective of every country. The role of the population in the process of economic growth and development cannot be overlooked. Malthus' and Kremer's views are opposite. Extant literature exhibits that scant research has been carried out on this significant topic in developing countries. Therefore, empirically investigating the effect of population on the growth performance of India as a developing country is necessary and will significantly contribute to the literature.
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2019-0496
