Investigating the Relationship between Population and  Growth with an emphasis on Neoclassical and Endogenous Growth Models in Iranian Economy

Bakhshi Dastjerdi, Rahul; Dalali Isfahani, Rahim; Emadzedeh, Mustafa; Mahinizadeh, Mansour; Mahmoudinia, Devoid

Investigating the Relationship between Population and Growth with an emphasis on Neoclassical and Endogenous Growth Models in Iranian Economy

Document Type : Research Paper

Authors

¹ Assistant Professor of Economics, University of Yazd

² . Associate Professor of Economics, University of Isfahan

³ . Professor of Economics, University of Isfahan

⁴ . Ph.D Student of Economics, University of Isfahan

⁵ Ph.D Student of Economics, University of Isfahan

Abstract

Based on the results of specifying and testing both neoclassical and endogenous growth models for Iran's economy, using VECM technique, it was found that the effect of population on real per capita income and the effect of real per capita income on population are significantly positive in the long run.Using impulse response function, the results for a short run period show that the effect of population on real per capita income is negative. According to the results, population growth seems to impose a cost on the society in the short run, but it can be considered as a kind of national saving. Our empirical results along with the recent developments in the literature, beyond the population-development controversy, show that Malthusian effect would be much weaker.

Keywords