Population Dynamics and Characteristics on the Economic Growth in Kenya
Keywords:
Population age structure, fertility rate, population level of education, economic growth, KenyaAbstract
The main purpose of the study was to establish the impact of population dynamics and characteristics on the economic growth of Kenya. An explanatory research design was adopted. An explanatory research design is used to show how variables relate to each other. The study employed Regression estimation technique and using annual time series data for the period 1963 to 2015. The main sources of these data were: Kenya National Bureau of Statistics publications, Government of Kenya Statistical Abstracts and Economic Surveys. Regression of coefficients results showed that Age structure (as a percentage of working age population) and GDP growth are positively and significantly related (β=8.887757, p=0.0093). The results also revealed that fertility rate (number of births per woman), and GDP growth are negatively and significantly related (β= -3.871491, p=0.0500). In addition, the results revealed that Education level of the population (as a % of total population) and GDP growth are positively and significantly related (β =0.206822, p=0.0008). Lastly, the regression results revealed that life expectancy (in years) and GDP growth are positively and significantly related (β=0.438283, p=0.0267). Based on the findings above, the study concluded that age structure, education level, and life expectancy have an important effect on economic growth while fertility rate have a negative and significant effect on the economic growth rate. The study recommends that the government should put measures to ensure that the economy grows at a higher rate than the population growth. This will ensure that the increasing demand of services arising from the population growth is met. Having a larger, healthier, and better-educated workforce will only bear economic fruit if the extra workers can find jobs. Open economies, flexible labor forces, and modern institutions that can gain the confidence of the population and markets alike may help countries reap the potential benefit created by their demographic transition. Openness to trade can be a key driver of economic growth, helping to significantly boost the benefits a country receives from the demographic transition.
Keywords: Population age structure, fertility rate, population level of education, economic growth, Kenya
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