Given assumptions about population growth saving and

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employment of capital and labor. Given assumptions about population growth, saving, andtechnology he works out what happens as time passes. The Solow model is consistent withthe stylized facts of economic growth. With constant population growth, the labor force L(the population) grows at a constant rate n.I/L* dl/dt=nFor example; if n is 0.4 it would mean population will grow 4% per year.18
This constant population growth will lead to increase in Y hence economic growth. In thelong run, there is a steady state economic growth. As labor grows at rate n, necessarily kgrows at rate n. Returns to scale are constant hence national income and product y, saving,and investment and consumption all grow at rate n. Again, higher savings rate by thepopulation will result in positive growth effect. The rate of population growth sets the longrun growth rate of the economy.Solow growth model assumes that population growth rates are independent of country-specific determinants of production. It also assumes diminishing returns to the two factors,capital, and labor. Thirdly it assumes that capital and labor (population) are paid according tomarginal physical productiveness.2.3 Empirical Literature ReviewAccording to Brander and Dowrick (1994), high population growth rates reduce economicdevelopment. It reduces investments through capital dilution. This effect eventually feeds intothe economic growth by reducing the GDP growth. Growth in population and economicgrowth demonstrate a reverse causality. Population growth is affected by the level ofeconomic development and population change affects economic development. However, thecausality effects differ in magnitude. Bloom and Freeman (1988) portends that, a decline inpopulation growth stimulates an increase in capital income growth and a low populationgrowth favors national investment. However, high levels of population growth tend to diluteresources, by straining the available resources. Brander and Dowrick (1994) discovered thatwhile population growth rate changes remained equally significant, this effect arises from thelabor supply side.Bloom et al. (2011) investigated the impact of population on economic growth concluded thatprojected declines in both labor force participation and labor force to population ratios19
implies a decline in the level of economic growth. The World Economic Forum (2004)explains that; the population in world is gradually rising, and that the world is facing aprospect that historical rates of improvement in standards of living might decline or evenslow. As such, the governments should consider tapping the benefits of increasing populationand encourage productivity in the economy.In spite the rapid population growth; the developing countries had shown improvement intheir economic conditions. Some quite substantial than others considerably, These arecommented on their strategies to cope with the problems associated with high populationgrowth through efficient market forces; World Development report (2004).The report also

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