The Impact of Population Change on Economic Growth in Kenya

Abstract

The debate on the relationship between population growth and economic growth has been undergoing and varies across countries. The first theory states that population growth stimulates economic growth. The second theory view population growth as a factor that adversely affects economic growth while a third school is that population growth is a neutral factor in economic growth and is determined outside standard growth models. Given this scenario there was a need to establish the relationship between economic growth and population growth in Kenya. The study employed Vector Auto Regression estimation technique and used annual time series data for the period 1963 to 2009. The results indicated population growth and economic growths are both positively correlated and that an increase in population will impact positively to the economic growth in the country. The study concludes that in Kenya population growth promotes economic growth and subsequently economic development.