International Review of Economics

, Volume 56, Issue 1, pp 17–27 | Cite as

Population and economic growth with human and physical capital investments

  • Alberto Bucci
  • Davide La Torre


We present a two-sector endogenous growth model with human and physical capital accumulation to analyze the long-run relationship between population growth and real per capita income growth. Formal education and investment in physical capital are assumed to be two separate components of human capital production. Along the balanced growth path equilibrium, population change may have a positive, negative, or else neutral effect on economic growth depending on whether physical and human capital are complementary/substitutes for each other in the formation of new human capital and on their degree of complementarity.


Economic growth Population Human capital accumulation Physical capital investment 

JEL Classification

O33 O41 J24 


  1. Alvarez Albelo CD (1999) Complementarity between physical and human capital, and speed of convergence. Econ Lett 64:357–361CrossRefGoogle Scholar
  2. Barro RJ, Sala-i-Martin X (2004) Economic growth, 2nd edn. MIT Press, CambridgeGoogle Scholar
  3. Bloom DE, Canning D, Sevilla J (2003) The demographic dividend: a new perspective on the economic consequences of population change. Rand, MR-1274, Santa Monica, CAGoogle Scholar
  4. Boucekkine R, Ruiz-Tamarit J-R (2008) Special functions for the study of economic dynamics: the case of the Lucas-Uzawa model. J Math Econ 44:33–54CrossRefGoogle Scholar
  5. Bucci A (2008) Population growth in a model of economic growth with human capital accumulation and horizontal R&D. J Macroecon 30:1124–1147CrossRefGoogle Scholar
  6. Dalgaard CJ, Kreiner CT (2001) Is declining productivity inevitable? J Econ Growth 6:187–203CrossRefGoogle Scholar
  7. Ehrlich I, Lui F (1997) The problem of population and growth: a review of the literature from Malthus to contemporary models of endogenous population and endogenous growth. J Econ Dyn Control 21:205–242CrossRefGoogle Scholar
  8. Galor O, Moav O (2002) Natural selection and the origin of economic growth. Quart J Econ 117:1133–1191CrossRefGoogle Scholar
  9. Growiec J (2006) Fertility choice and semi-endogenous growth: where Becker meets Jones. Topics Macroecon 6(2)Google Scholar
  10. Kelley AC (1988) Economic consequences of population change in the Third World. J Econ Lit 26:1685–1728Google Scholar
  11. Lucas RE (1988) On the mechanics of economic development. J Monet Econ 22:3–42CrossRefGoogle Scholar
  12. Strulik H (2005) The role of human capital and population growth in R&D-based models of economic growth. Rev Int Econ 13:129–145CrossRefGoogle Scholar
  13. Tournemaine F (2007) Can population promote income per-capita growth? A balanced perspective. Econ Bull 15:1–7Google Scholar
  14. United Nations (1998) Demographic Indicators 1950–2050. New YorkGoogle Scholar
  15. Uzawa H (1965) Optimum technical change in an aggregative model of economic growth. Int Econ Rev 6:18–31CrossRefGoogle Scholar

Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.Department of Economics, Business and StatisticsUniversity of MilanMilanItaly

Personalised recommendations