Implications of Population size

The size of the population of a country has a number of implications. Some are political while others are economic.  We will examine them together

  1. It determines the size of the labour force.
  2. It determines the per capita income and the amount of resources available per person. In an ideal setting, the higher the population size, the lower the per capita income.
  3. Population size determines the amount of recognition or respect given to a country at the international level.
  4. The size of a population is an indicator of the strength of her market and her potential demand for goods.
  5. It determines the amount of foreign aid and investment that flows into a country.
  6. Population size also showcases the level of government expenditure in the provision of social amenities.

Implication of Population Growth

The implications of population growth are as follows:

  1. Population growth will lead to a general fall in per capita income and standard of living.
  2. Population growth will lead to increase in effective demand for goods and services as consumption increases with growth.
  3. The cost of living will increase due to increased demand which is not matched with a higher rate of productivity.
  4. The size of labour force will increase.
  5. It can result into a higher rate of unemployment if the increased labour force is not gainfully employed.
  6. There will be heavy pressure on the available social services and amenities.

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