JBS Vol 07. Num 2. 2005 - AN EMPIRICAL INVESTIGATION TO DETERMINE THE LONG-RUN RELATIONSHIP BETWEEN POPULATION GROWTH AND PER CAPITA INCOME IN BANGLADESH

Mohammad S. Hasan
Abstract

This paper empirically examines the nature of the time-series relationship between population growth and per capita income growth using the annual data of Bangladesh within the framework of cointegration methodology. This study finds evidence of a long-run stationary relationship between population and per capita income. Our results also indicate a bi-directional or feedback relationship between population and per capita income. The results of a negative causality flowing from per capita income to population growth appear to indicate that per capita income tends to lower the population growth. Likewise, population growth positively contributes to the growth of per capita income.