Is there a long‐run relationship between population growth and living standards? The case of India

Abstract

This note examines the existence of a long‐run, cointegrating relationship between population and per capita GDP in India for 1950–93. Unit root tests show that per capita GDP is integrated of order one while population is integrated of order zero; further, estimation of the bi‐variate relationship using the cointegration procedure of Johansen shows that no long‐run relationship exists. Thus, population growth neither causes per capita income growth nor is caused by it. A corollary is that population growth neither stimulates per capita income growth nor detracts from it.

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