IMPACT OF POPULATION GROWTH ON ECONOMIC GROWTH OF NIGERIA (1980 – 2020)
IMPACT OF POPULATION GROWTH ON ECONOMIC GROWTH OF NIGERIA (1980 – 2020)
Keywords:
Population growth, Economic growth, Granger Causality, , Error Correction Mechanism.Abstract
Population growth in most of the developing countries of the world has become an issue of concern
not to the policy makers but also to the entire country. Thomas Malthus had propounded a theory
on population growth incinerating that population growth will counter food production, thereby
making it a treat to the wellbeing of a country. Despite the fact Malthus theory has failed in most
developed countries but it may still be relevant in developing countries where people subsist what
they grow. This study investigates the impact of population growth on economic growth of Nigeria
from 1980 to 2020. The data were analyzed using Autoregressive Distributive Lag (ARDL) Model,
ARDL Bound test for Cointegration, Error Correction Mechanism (ECM) and granger Causality
test. The result reveals that population growth rate (PGR) has positive impact on economic growth
(LGDPP) in Nigeria in the long run under the periods of the study. The granger causality test
result showed that, there is bidirectional causal relationship between crude death rate (CDR) and
economic growth (LGDPP). Also, unidirectional causal relationship between net migration (NTM)
and economic growth (LGDPP) lastly, unidirectional causal relationship was found between
population growth rates (PGR) and economic growth (LGDPP) Hence, it is recommended
government should should ensure that Nigeria’s rising population are channeled into areas of the
economy where they may more fully, effectively and efficiently utilized in bringing about high
rates of economic growth for the country. And secondly, efforts at providing easy of doing
business incentive and services should be doubled and intensified to meet the increasing needs of
the increasing business.