Study of Population Growth Impact on Economic Growth during (2003-2017) in Afghanistan

Abstract

Achieving high economic growth is one of the significant purposes, which all countries seek to achieve, and achieving it requires a realistic analysis of country’s economy and a better understanding of the principles and rules of economic growth. Meanwhile, demographic changes over time, as one of the most important issues impacting different parts of societies gaining special importance so that demographic changes can be tangible in investment, saving, and overly in economic growth. The relationship between population growth and economic development has been analyzed theoretically and empirically over time by different economists. Some economists believe which fast population growth prevents economic growth; while others believe, that population growth leads to economic growth due to increased demand, level of production and national income. The aim of this study was to investigate impact of population growth on economic growth during (2003-2017) in Afghanistan. In this study, it has been used the data which provided by World Development Index (WDI) Central statistics, books, journals, scientific and research journals and other related articles. For measuring the GDP growth and simple model squares estimation method from programs such as Excel, Eviews and Pass have been used indeed. Economic growth as a dependent variable, population growth, unemployment average, and foreign direct investment as an explanatory (independent) have been implemented.

The outcomes showcase that population growth has a positive effect on economic growth (1%) increase in population growth which causes economic development in order to increase 2.4%. On the other hand, according to obtained results from model summary; gained determination is 0.921. It means the dependent variable of economic growth is elaborated almost 92% by independent variables of population growth, unemployment, and foreign direct investment. This demonstrates strong population growth impact on economic growth and its correlation intensity is almost 1.