Abstract
The aim of the paper is to study the impact of population dynamics on gross domestic product GDP growth in India. During last two decades India has been showing phenomenal economic development. One of its main reasons is economic and social policy has been provided by government. Since 1990-s India has deregulated several industries, has privatized many state-owned enterprises, and contributed to foreign direct investment. The Indian middle class, that is almost a quarter of its total population amount, has been driving economic growth in India. High level of education and English-speaking population in urban areas attract foreign investments and provide fertile ground for an intensive development of the country's high-technology sector. Economic views on the relationship of population and economic growth are divided into two areas: one that argues that population growth contributes to the nation's economy by stimulating economic growth and development, and the other argues that population growth may be detrimental to the nation's economy. Results of this research are consistent with the first theory. The study revealed that in 1961—2018 population dynamics (ages 15—64) was associated with GDP growth (per capita) in India positively, and strength of the relationship was moderate that means there are many factors push economic growth in India and population dynamics is only one of them. The Augmented Dickey-Fuller test has been used to check population and GDP growth series to identify if they are stationary and can be used for Granger causality test. It has shown that population and GDP growth series are stationary and Granger causality test can be performed to identify the direction of causality for these series. Granger causality test has shown that population dynamics Granger causes GDP growth in India. Correlation coefficient R=0,54 demonstrates that population dynamics has been playing important but not a single role in stimulating economic development in India. Therefore population dynamics can be effective driver of economic development of the state being combined with other policy measures.
Highlights
Number of studies contribute to the first theory, statingThe relationship between population dynamics and that in certain circumstances population growth can push economic growth is controversial
The results show that first null hypothesis can be rejected population dynamics (PD) Granger causes GDP growth
Population dynamics can be effective driver of economic development of the state being combined with other policy measures
Summary
Number of studies contribute to the first theory, stating. The relationship between population dynamics and that in certain circumstances population growth can push economic growth is controversial. Population structure and economic development of the state. Andrew Gamble states dynamics can both affect and be affected by economic that the remarkable success of Western economies in the development of a country. Fast population growth in low- past 200 years is associated with strong population growth income countries may slow down their development while [11]. Thomas Piketty [12] indicates that "...growth always slow population growth in high-income countries may cause includes a purely demographic component and a purely economic and social problems.
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