The relationship between economic growth and population growth

My brief for the Sheffield Political Economy Research Institute (SPERI) on how the UK’s transition to a services-led economy weakens the relationship between population growth and economic growth.

In this Brief, the Sheffield Political Economy Research Institute (SPERI) considers the relationship between population growth and economic growth in the UK. The fact that populations and economic output tend to grow in tandem, albeit at different rates, has been well-documented. However, the link between population growth and economic growth in the UK appears to have weakened. The implications of this shift are not clear. Certainly, productivity improvements are not driving the present recovery in economic output, and it may be that rapid population growth, in the context of the increasing dependence on labour-intense industries, offers the only viable path to growth for the UK under the present economic model. In advance of the Scottish independence referendum, the Brief also includes specific analysis of the relationship between population growth and economic growth in Scotland.

Click here to read the full document.

Image: Garry Knight

Advertisements