Question

The size of a country’s population and the associated age distribution can be causal factors for economic growth. Why is the size of the population important to economic development? Can size be a disadvantage? Why is age distribution important?

Answer 1

The effect of population growth can be positive or negative depending on the circumstance. A large population has the potential to be great for economic development. After all the more people you have, the more work is done, and the more value is created. So, surely this can be nothing but good. There’s a reason that farmers often have a lot of kids-more kids mean more workers. But, unfortunately, it isn’t that simple. In a country with abundant resources and money-a rich country- perhaps more people is a good thing. But that isn’t always the case in countries with limited resources. Limited resources and a larger population put pressure on the resources that do exist. More people means more mouths to feed, more health care and education service to provide, and so forth. So, the population can be a mixed bag.