Populations and Economic Development

• Factors that impact an economy’s population:

  • Birth Rate
  • Death Rate
  • Immigration
  • Emigration
• Population - number if people in a country or region.
• Immigration - the process of moving to a new country, with plans to live there permanently
• Emigration - the act of leaving a country to live in another country
• Net Migration - the difference between the immigration and emigration of a country
• Advantages of Population Increase:

  • Size of markets will Increase
  • Increase aggregate demand
  • Larger Labour Force
  • Increased Mobility
  • Improved Economies of Scale
• Disadvantages of Population increase:

  • Overcrowding
  • Not enough Resources to support population (famine)
  • Environmental Pressure
  • Restricting Improving standards of living (more dependants in population)
• Dependency Ratio - proportion of the population that has to be supported by the labour force
• Optimum Population - population size that maximises a country’s output per head
• Economic Development - process in which an economy changes and becomes more advanced

  • Improved standards of living, decreased poverty, and more consumer choice
• Economic Development

  A) increase

  B) higher

  C) +

  D) increase

  E) increase

  F) improved

  G) improved

  H) diversification

  
• Factors that impact Economic Development

  • GDP per Head
  • Savings Ratios in Households
  • Levels of Investments
  • Population Growth
  • Education and Healthcare
  • Size of Sectors in the Economy
• Countries with high economic development

  • High GDP/head
  • High standards of living
  • High % employed in tertiary sector
  • High investment and productivity
  • Good Education and Healthcare
• Countries with low economic development

  • Low GDP/head
  • Low standards of living
  • High % employed in primary sector
  • Low investment and productivity
  • Poor Education and Healthcare
• Primary Sector - industries which extract natural resources

  • Agriculture, fishing, forestry, mining
• Secondary Sector - manufacturing and construction industries
• Tertiary Sector - industries which provide services

  • Banking, healthcare
• GDP per Head (Person) - main measure used to determine and compare living standards
• Human Development Index - takes into account income, education, and life expectancy
• Creating economic development through government Intervention

  • Spending on infrastructure, education, and healthcare
  • Policies to protect domestic industries from foreign competition (replace imports with domestic goods), and encourage investment