Population Growth And Economic Development In Nigeria

Project and Seminar Material for Economics

Abstract

This study is on population growth and economic development in Nigeria. The total population for the study is 200 staffs of national population commission, Akwa Ibom State. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrators, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

Chapter One

Introduction

1.1 Background of the Study

Over the years if has become established that the existence of an efficient human capital is the key to economic growth and development in any nation. This seems from the fact that every other facility and resources required for economic development is driven by the availability of human capital. More so, in the absence of effective human capital development, an increasing population can have adverse negative effect on the economic growth of a nation. This is because a lot more resources are taken out to manage and cater for the teeming population that the same can generate.

It is therefore correct to state that the economic growth of a nation is significantly dependent on the growth of its population. This effect or impact can be either negative or positive depending at the existence of certain factors and conditions, when studied and understood can be managed or controlled to ensure continuous and sustainable economic growth and development. Meier (1984).

Economic development and growth depend on many factors or variables. These variables include variable resources, capital, population and technology. Development is also dependent on growth. Lipase (1963).

People have often said to crucial to the development of every society. Growth in population is one of the components of economic growth (wish the associated, although delayed increase in the labour force) has traditionally been considered a positive factor in stimulating economic growth and development. Lipase (1963).

The relationship between economic development and the growth of population is theoretically held to be positive especially when the population is largely productive and not dependent. Increased economic growth does not by itself guarantee economic development it makes economic development possible.

Havey (1983). Economic growth enables improvements or positive changes to take place in various of economic activity due to increased production of goods and services. Larger population provide the need consumers demand to generate favourable economies of scale in production to costs of labour force means more productive man power in the economy.

The ability for a country to effectively exploit natural resources is dependent on among other things, the managerial and technical skills of its people. It is the people who exploit natural resources, accurate capital and carry out national political organizations and carry out national development programms. Thus, labour is the major contributor to prosperity and growth. Tadaro, (1982).

According to the theory of demographic transition growth occurs only after country would have undergone different levels of population growth to arrive to an optimum wide will naturally lead to growth.

A more conventional economic argument is that population growth in many third world countries a region is in-fact desirably to stimulate economic growth and development.

This is not a case in Nigeria; Nigeria is a less developed country and a highly populated one at that, more so her growth rate has always been very low, compared with the increase in population. This features of the nation is an cause for concern.

During the study, it is necessary to state that because development has no unit if measurement and because of lack of reliable date on its components economic growth will be used as a proxy for measuring development. This is because economic growth is the one component from which other components spin off and to which other components are related.

1.2 Statement of the Problem

Growth is a complex process as development is a multi dimensional one. The nature and causes of growth go beyond what is expressed by improvement in Gross Domestic Product.

Every economics primary objective is to develop in the medium or intermediate, this objective is stated as the need for growth. In the short run it is stated as the need for growth to attain whatever improvement is necessary for growth. In relation to this study the condition necessary for economics development and growth is population growth while growth itself is a condition necessary for development.

Population growth is the rate of which a given population multiplies itself. The population growth rate is as important to economists as the size of the population. Governments and economists would like to know if the population is growing faster or slower than the rates of other economic indicators.

Economics growth refers to the study process by the productive capacity of the economy is increased overtime to bring about increase in the output of goods and services and rising levels of national income. (Hodder’s (1980).
The growth in the output of goods and services (i.e growth in GDP). It is the process by which national income or output is increased. An economy is said to be growing if there is a sustained increase in the actual output of goods and service per head. Meier GM (1984).

The rate of economic growth therefore measures increase in real national income, during a given period of time, usually a year.

Economic development is not the same as economic growth. It means more than mere growth of the economy (in terms of increased output) it is in the process of increasing substantial positive transformation in the various sectors of the economy. Meier GM (1984). The positive changes which take place improve the general rise in the standard of living of the masses with economic development; there are structural transformations in the different sectors of the economy as well as general improvement in different areas of the country, leading to increase economic welfare of the citizens. Economic development on the other hand is generally defined as consisting of “Improvement” in the various aspects of the life of the entire population of a country such improvements are generally manifested in greater numbers of useful tools for employable persons, higher real incomes, better health conditions, (literacy) and better government services.

Given Nigerians economic structure, population and rate of economic expansion, most people have blamed Nigerians low growth and development on a high population that is large and not very productive. Other has opined that the little growth the country has attained is a direct consequence of a large population.

These divergences question the theoretical relationship between populated but not growing but China is highly populated and growing rapidly. Also the growth of population in Western Europe has lead to its rapid industrialization. This study is prompted by the need to understand population growth and economic development in Nigeria.

The Nigeria population has been growing while the rate of economic growth has such little improvement the question on how best to exploit the theoretical relationship between population growth and economic development has persisted for long and it has become necessary to asses the issues. Thus, this scenario prompts us to find out whether the increasing population growth has a positive or negative effect on Nigerians development.

1.3 Objective of the Study

The following of the study research includes the followings

To determine whether a relationship exists between population growth and economic development.
To determine the direction of causality between population growth and economic growth.
To ascertain the effect of population growth on economic development

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: there is no relationship exists between population growth and economic development.
H1: there is relationship exists between population growth and economic development.
H02: there is no direction of causality between population growth and economic growth.
H2: there is direction of causality between population growth and economic growth.

1.5 Significance of the Study

The study will give clear insight on the population growth and economic development in Nigeria. The study will be beneficial to students and the general public. The study will also serves as reference to other researchers that will embark on this topic

1.5 Scope and Limitation of the Study

The scope of the study covers population growth and economic development. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) TIME:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms

Population Growth:

Population growth. In biology or human geography, population growth is the increase in the number of individuals in a population. … It is expected to keep growing, and estimates have put the total population at 8.6 billion by mid-2030, 9.8 billion by mid-2050 and 11.2 billion by 2100.

Economic Development:

Economic development is the process by which a nation improves the economic, political, and social well-being of its people. The term has been used frequently by economists, politicians, and others in the 20th and 21st centuries.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was population growth and economic development in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of population growth and economic development in Nigeria

5.2 Summary

This study was on population growth and economic development in Nigeria. Three objectives were raised which included: To determine whether a relationship exists between population growth and economic development, to determine the direction of causality between population growth and economic growth, to ascertain the effect of population growth on economic development. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of national population commission, Akwa Ibom State. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrators, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

The econometric evidence reveals that population growth exert positive and significant effect on economic growth measured as Per Capita Income (PCI) and Real Gross Domestic Product (RGDP) in Nigeria between 1981 and 2007. Although, there is a positive correlation and degree of determination also shows that the multiple regression equation enjoys a prior expectation that there is no negative relationship between economic growth and population.

The statistical characteristics relates to indicator of population quantity but not only qualities and the relatives abilities to perform social and economic role are not into consideration (which includes literacy, educational attainment, intellectual capacity, professional skill, work experience, physical disability and mental defeat . On the other hand, analytical technique examined the significant effect of population on economic growth in Nigeria. The result of model shows that per capita income is low and thus, there exist negative relationship between per capita income and population.

5.4 Recommendation

A nation that involves the welfare of the people are population policies but the concerned here with policies related to changes in the quality of the population and its geographical distribution in the members of human beings their education and skills, and where and how they live relative to the space and resources available to each person. The rate of changes of population size the level of fertility and mortality, the distribution significantly interact with the social and economic welfare of the people. Improvement of the social/human welfare of the people and population related policies to promote growth in national output as population increases. Such policies include food subsidizing, employment generation, public health provision, etc. Agricultural revolution provide food and employment generation for teeming population. Population growth has brought about a vast increase in food requirement. Consequently, agriculture continues to be on the base of the economy in most developing nations like Nigeria, so urban agriculture development strategy is necessary to be considered to improve agricultural production which is essential for overall economic and social growth. Governments at various levels are urged to extend to women and men the freedom and mean to determine the number of children in each family and the knowledge which will help them exercise responsible parenthood. To serve national objection of economic development, public health, and welfare and environmental conservation, it is recommended that Nigeria should establish policies to influence the rate of growth of their population and to adopt politically and ethically. Acceptable measures towards this end that is within her administrative and economic capability. For most nations of the world the major goal of population influencing policies should be a reduction in fertility. Country like Nigeria in which rapid population growth is now occurring should seek to reduce their rates of national increase to less than 15 per 1,000 per year over the next 2 decades. Government and private effort should be should be expanded to accelerate the trend toward the smaller family and the sense of individual responsibility toward society.

Project Material Download