Relationship between demography and economic growth from the islamic perspective: a case study of Malaysia

Abdul, Salman and Masih, Mansur (2018): Relationship between demography and economic growth from the islamic perspective: a case study of Malaysia.

Abstract

There have been various theoretical and empirical studies which analyze the relationship between demography and economic growth using different methodologies, which led to different results, interpretations and continuous debates. Demography as a statistical study of human population, has a significant impact on economic growth given certain area and period of time. This paper aims to include some of Islamic theory of demography and socio economics especially regarding family planning issue, along with other commonly used theories and bring them into the investigation of the long- and short- run relationship among demographic and socioeconomic variables in developing countries. Malaysia is used as a case study. This study, therefore, attempts to unravel the causality direction of demography and economic growth. We used annual data for the total fertility rate and infant mortality rate to represent demography, per capita gross domestic product and consumer price index to represent economic growth, and female labor participation along with female enrollment to secondary education percentage as links between demography and economic growth. Based on standard time series analysis technique, our findings tend to indicate the importance of female enrollment to education in finding a balance in the demography-growth nexus. The finding is important for the policymakers to choose the most suitable framework to model the economy related to changes in demography, health and fertility, education and labor employment

• Item Type: MPRA Paper
• Language: English
• Keywords: Demography, economic growth, VECM, VDC, Malaysia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial Econometrics; J - Labor and Demographic Economics > J1 - Demographic Economics; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z12 - Religion

References

Alam, S., Ahmed, M. H., & Butt, M. S. (2003). The dynamics of fertility, family planning and female education in Pakistan. Journal of Asian Economics. 14(3), 447 -463).

al-Hibri, A. Y. (1993). Family Planning and Islamic Jurisprudence: Religious and Ethical Perspectives on Population Issues. United Nations's International Conference on Population and Development. The Religious Consultation on Population.

Becker, G. (1960). An Economic Analysis of Fertility. National Bureau Committee for Economic Research, Demographic and Economic Change in Developed Countries. Princeton, New Jersey: Princeton University Press.

Birdsall, N. (1977). Analytical Approaches to the Relationship of Population Growth and Development. Population and Development Review. 3(1 -2), 63 -102.

: Birdsall, N.; Pinckney, T. C. & Sabot, R. H. (1996) : Why Low Inequality Spurs Growth: Savings and Investment by the Poor, Working Paper, No. 327, InterAmerican Development Bank, Office of the Chief Economist, Washington, DC

Fatah, F. A., Othman, N., & Abdullah, S. (2012). Economic Growth, Political Freedom and Human Development: China, Indonesia and Malaysia. International Journal of Business and Social Science. 3(1), 291 -299.

Gobalasingham, K. (2013). A Global Analysis of Infant Mortality. Florida: University of Florida.

Johansen, S. and Juselius, K. (1990), Maximum likelihood estimation and inference on cointegration, with applications to the demand for money, Oxford Bulletin Economics Statistics, 52(2), 169-210.

Lozeau, B. (2007). The Effects of Population Growth on Economic Performances in China and India. Brussels Journal of International Studies. 4(1), 1 -8.

Malthus, T. R. (1798). An Essay on the Principle of Population. Penguin, UK.

Parr, N., & Guest, R. (2014). A method for socially evaluating the effects of long-run demographic paths on living standards. Demographic Research.31(11), 275 -318.

Roudi-Fahimi, F. (2004). Islam and Family Planning. Population Reference Bureau, MENA Policy Brief., 1 - 8.