Economic Growth and population Growth
In the solow model we saw that countries that have higher population growth rates should have a lower steady state level of capital (holding all other factors constant). this would imply that these countries would have lower income per capita compared to countries with lower population growth rates.
for each of the 20 countries listed below find the most recent data on the
(1) Level of income per person
(2) Population growth rate
1.Angola,Belgium,Benin,China,Denmark,Finland,Greece,Guinea-Bissau,India,Japan,Nicarragua,niger,Nigeria,portugal,Senegal,South Africa,Tanzania,Thailand,Venezuela and Zimbabwe.
A. Present data in a table.
B. Using spread sheet program such as Excel,polt the data points. in your graph, population growth rate should be on the x-axis while income per person should be on the y-axis. You should include a trendline in your graph to show the genernal relationship between population growth and income per capita. Does the data support the Solow model conclusion?