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Productivity, Investment in Infrastructure and Population Size: Formalizing the Theory of Ester Boserup

In: Increasing Returns and Economic Analysis

Author

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  • C. Y. Cyrus Chu
  • Yao-Chou Tsai

Abstract

The popular hypothesis of increasing Retums in the new growth theory has an implication which has been inevitably related to population. The assumption of ‘learning by doing’, almost by definition, implies that productivity growth is an increasing function of the aggregate production activity, which in turn might be affected by the size of population. One version of the ‘human capital’ approach to growth assumes that the external effect in production depends on the total stock of human capital, which in turn leads to a positive relationship between population and technological growth. A third approach to modelling increasing Retums is to emphasize the ‘non-rivalry’ factor, normally referred to as ‘knowledge’, in the production technology. Some researchers (such as Romer, 1990) concentrate on the public accessibility of knowledge when it is used; others (such as Arrow, 1962) show that the per capita cost of creating knowledge is inversely related to the population size. In either case, a larger population size can support more publicly accessible knowledge, which is another kind of connection between technological growth and population.1

Suggested Citation

  • C. Y. Cyrus Chu & Yao-Chou Tsai, 1998. "Productivity, Investment in Infrastructure and Population Size: Formalizing the Theory of Ester Boserup," Palgrave Macmillan Books, in: Kenneth J. Arrow & Yew-Kwang Ng & Xiaokai Yang (ed.), Increasing Returns and Economic Analysis, chapter 3, pages 90-107, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26255-7_5
    DOI: 10.1007/978-1-349-26255-7_5
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    Cited by:

    1. Kolk, Martin, 2019. "Demographic Theory and Population Ethics – Relationships between Population Size and Population Growth," SocArXiv 62wxd, Center for Open Science.

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