Assessing the Role of Population Size on GDP Growth Rate: A Concise Review with Lessons from China

While population size can determine the size of human capital of a country which is essential for economic growth. It may not necessarily be a major factor to influence GDP growth rate. Malthusian theory of population postulates that increase in population size would create hunger, starvation and therefore stagnate economic prosperity. On the other hand, the Endogenous growth theory demonstrates the significance of population growth in facilitating economic growth via human capital development, entrepreneurial skills and innovation among others. China demonstrated during its rising economic prospects that the size of population significantly and directly influences economic growth. However, this review shows that over the past few years the dynamics has shifted with recent data indicating that China’s growth is not dependent on its population size. Therefore, for population size to increase GDP growth rate, good policies that target human capital development must be put in place.