Population Growth and Economic Growth with the Presence of Technological Progress An Empirical Study on Jordan Over the Period (1978-1998)

Adnan Fadel Abo Al-Haija


This paper aims at examining the relationship between economic and population growth paths within a bi-directional causality context, in which technological progress plays the key role.
The empirical part of the study utilizes Jordanian data for the period (1978-1998).
The study assumes that improving individuals’ standards of living as well as creating more job opportunities for women will effectively reduce population growth rates, which in turn contributes to raise levels and growth rates of per capita income.
Benefiting from recent contributions of the economic theory, this study developed four econometric models to test the hypotheses.
It has been found that raising levels of human and physical capital tends to generate higher levels of per capita income, while higher population growth rates dampen income growth rates.
Also, it has been found that higher female participation rates in the labor market accelerate per capita growth rates.
This study concludes that a positive steady-state growth rate in per capita income cannot be reached unless higher investment rates are attained in physical and human capital as well as in technical knowledge in excess of population growth rates.
Based on the above- stated findings and conclusion, it is recommended to exert more efforts toward broadening technical knowledge, enhancing investment in human and physical capital, and increasing more education and job opportunities for women.

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