Impact of Population Growth on Living Standards in Gimbi
Impact of Population Growth on Living Standards in Gimbi
DEPARTMENT OF ECONOMICS
GROUP NAME:
1. LALISE TEMESGEN………………………………...209/11
2. LALISE ABDISA…………………………………….210/11
3. LALISE IMIRU……………………………………...211/11
4. MERGA KIFLU …………………………………….217/11
5. MARTHA YONAS …………………………………218/11
JUNE 2021
GIMBI, ETHIOPIA
i
Statement of the Authors
Wedeclare that this Research entitled “The Impact of Population Growth and Unemployment
on Living Standard House Hold in Case of Gimbi Town” is our work and that all sources of
materials used for this research proposal have been appropriately acknowledged. This researchis
submitted in partial fulfillment of the requirements for BA degree in Economics to Rift Valley
University.
We seriously declare that this research is not submitted to any other institution anywhere for the
award of any degree or diploma. The researchdeposited at the Rift Valley University Gimbi
Campus Library to make available to borrowers under rules of the Rift Valley University
Library. Brief quotations from this research are allowable without special permission if accurate
acknowledgment of the source is made. However, requests for permission for extended
quotations from or reproduction in part of this manuscript may be granted by Rift Valley
University, the school of under graduate studies in all other instances, permission must be
obtained from the authors.
Group Name Signature Date
1. _______________________ ____________ _____________
2. _______________________ _____________ _______________
3. ______________________ _____________ ______________
4. _______________________ _____________ _______________
5. _______________________ ____________ _______________
Sing._________________
ii
Contents
Statement of the Authors..............................................................................................................................iii
AKNOWLEDGMENT.................................................................................................................................vi
ABSTRACT..................................................................................................................................................vii
ACRONYMS.............................................................................................................................................viii
CHAPTER ONE............................................................................................................................................1
INTRODUCTION.........................................................................................................................................1
1.1Background of the study.......................................................................................................................1
1.2 Statement of the problem.....................................................................................................................3
1.3 Research questions...............................................................................................................................4
1.4 Objectives of the study.........................................................................................................................4
1.4.1 General objectives.........................................................................................................................4
1.4.2 Specific objective of the study......................................................................................................4
1.5 Hypothesis of the study........................................................................................................................4
1.6 Significance of the study......................................................................................................................4
1.6 Scope of the study................................................................................................................................5
1.7. Limitation of the study........................................................................................................................5
1.8 Organization of the study.....................................................................................................................5
CHAPTER TWO...........................................................................................................................................6
2. LITERATURE REVIEW..........................................................................................................................6
2.1. Theoretical literature review...............................................................................................................6
2.1.1. Concept and definition of population growth..............................................................................6
2.1.2 Population growth and environment.............................................................................................6
2.1.3. Population growth and food production......................................................................................8
2.1.4. Impact of rapid population growth on health services.................................................................8
2.1.5. Impact of rapid population growth on education services...........................................................9
2.2. Empirical Literature Review.............................................................................................................10
CHAPTER THREE.....................................................................................................................................13
METHODOLOGY OF THE STUDY.........................................................................................................13
3.2 Sources of data...................................................................................................................................13
3.3 Method of data collection..................................................................................................................13
3.4. Sampling method..............................................................................................................................14
3.5. Sample size.......................................................................................................................................14
3.6. Method of data analysis....................................................................................................................15
CHAPTER FOUR........................................................................................................................................16
iii
DATA ANALYSIS AND DISCUSSION...................................................................................................16
4.1. Data analysis.....................................................................................................................................16
4.1.1. Demographic structure of respondents......................................................................................16
4.1.2. Educational Status......................................................................................................................17
4.1.3. Marital Status.............................................................................................................................18
4.1.4. Birth controlling mechanism and knowledge about it of respondents.......................................18
4.1.5. Condition of unemployment in the Gimbi town........................................................................20
4.1.6. Housing condition of respondents.............................................................................................22
4.1.7. Increment of price of food in the Gimbi town...........................................................................23
4.1.8. Sanitation condition...................................................................................................................24
4.2. The determinants of rapid population growth in Gimbi town..........................................................25
4.2.1. Fertility.......................................................................................................................................25
4.2.2. Mortality....................................................................................................................................26
4.2.3 Migration.....................................................................................................................................27
4.3. Impact of rapid population growth on Unemployment development on Gimbi town......................27
4.3.1 Impact of unemployment............................................................................................................28
4.3.2. Impact on health services...........................................................................................................28
4.3.3. Impact on education service.......................................................................................................28
4.4. Development, Population growth and Mortality-fertility link..........................................................29
CHAPTER FIVE.........................................................................................................................................30
6. SUMMERY CONCLUSIONS AND RECOMMENDATIONS.........................................................30
5. 1 SUMMERY..........................................................................................................................................30
5.2. Conclusion........................................................................................................................................30
5.2. Recommendation..............................................................................................................................30
REFERENCE...............................................................................................................................................32
QUESTIONNAIRE.....................................................................................................................................34
iv
AKNOWLEDGMENT
Above all would like to thank GOD for giving us strength and patience until us completing this
research. Next to GOD, we would like to give our deepest gratitude to our academic advisor Leta
Barofor his advice, encroachment, collaboration and constrictive comments from the beginning
to the completing of this paper.
Our special thanks go to our families for their support and encouragement in all our life. we
would also to express our special thanks to all our friends for their moral support and
encouragement for success of this paper. We would also like to say thanks to the staff of
Gimbitown municipality, dwellers and health offices for their effort in providing relevant data
for this research.
v
ABSTRACT
The main objective of this study was to assess the impact of rapid population growth on socio
economic development of Ethiopia in Gimbitown. To conduct the study, the researcher used both
secondary and primary data. The primary data was collected from respondents through
questionnaires and secondary data was obtained from different documents. The systematic
random sampling method was used to select one hundred households from 23410 households. To
analyze the data, the data used thedescriptive method of data analysis. Based on the study
conducted with reference to the title, it is concluded that the main determinants of population
growth of the town were high fertility rate and increase in the rural-urban migration. Population
growth has negative impact on employment, health status, and education, housing condition and
living standard of a nation in general. In the town there is no aware of birth control mechanism
and no adequate and safe waste disposal site for which highly increasing population and it
exposes for sanitary problem of dweller of the town. It is better to give attention via
vi
ACRONYMS
CSA – Central Intelligence Agency
UN – United Nation
vii
CHAPTER ONE
INTRODUCTION
1.1Background of the study
High population growth is growing concern throughout the word and challenge to countries
'economies. The word's population was about billion in 1800 and rose to 2.5billion in
1950(Martin 2009).
In the year 2007 the world’s population was 6.7 billion and is projected to rise to 9.2 billion by
2050 with almost population growth projected to occur in what are now considered less
developed nations. Between 1950 and 2000, when the world population increased from 2.5
billion to6.1 billion, the major shifts in population weights by continent were the result of
changes in fertility and mortality rather than large-scale migration (Martin,2009).
Malthus (1798) stated that population increase is detrimental to a nation’s economy due to a
variety of problems caused by the growth. Malthus pointed out that population tends to grow
geometrically, whereas food supplies grow only arithmetically. According to the Malthusian
model, the causation goes in both directions. Higher economic growth increases population by
stimulating early marriages, high birth rates, and reducing mortality rates from malnutrition. On
the other hand, higher population depresses economic growth through diminishing returns. This
dynamic interaction between population and economic growth is the center of the Malthusian
model.
Economist advocating the positive side to population growth, say that the population growth
creates problems in the short run that include poverty, famine and unemployment. Yet, they also
state that in the long run, it leads to new development through advancement in technology that
leave countries better off than if the problem never occurred. On the positive side, there is chain
reaction of events caused by population growth.
According to the neo-classical growth model, population is beneficial to an economy due to the
fact that population growth is correlated to technological advancement. Raising population
promotes the need for some sort of technological change in order to meet the rising demand for
certain goods and services. With the increased populace, economies are blessed with a large
1
labor force, making it cheaper as well, due to its immense availability. An increase in labor
availability and a low cost for labor costs results in a shift of money usage from wage into
advancement through technology (Coaled and Hoover, 1958).
According to Friedberg and Hunt (1995) population growth and urbanization go together, and
economic development is closely correlated with urbanization. Rich countries are urban
countries. Population growth increases density and, together with rural-urban migration, creates
higher urban agglomeration. And this is critical for achieving sustained growth because large
urban centers allow for innovation and increase economies of scale. Companies can produce
goods in large numbers and more cheaply, serving a large number of low-income customers.
Many countries have companies which have been benefitting from increasing population growth
and density in targeting the large number of lower and lower-middle income. Population growth
in Ethiopia continues to exert pressure on land and other resources. High fertility, combined with
declining child mortality, gave Ethiopia one of the world’s fastest population growth rates in the
1970s and 1980s (Ajayi and Kovole, 1998).
This rapid growth, combined with an economic slowdown, prompted the government to promote
family planning to lower fertility rates. Total fertility rates are the average number of children
that would be born to a woman over her productive life. In E Ethiopia total fertility rate has been
fluctuating over the years. The total fertility rate was 8.1 children per women between 1975
to1978. Fertility rate decrease to 6.7 children for the period 1992 to 1997 the fertility rate was 4.7
children per women. There was an increase in fertility rate to 5 children per women for the
period between 1999 to 2000. Fertility rate decrease again to 4.6 children between 2006 to
2008(NCPD et al., 1999)
There was a disparity in fertility among rural and urban women which could be attributed to the
significant role played by education in population growth. When latency of women improves
fertility rates also tend to decrease. Contraceptive use has increased from 39 percent of married
women in 2003 to 46 percent in 2009(CSA, 2009).
2
1.2 Statement of the problem
A large population growth on the other side is not only associated with food problem but also
impose constraints on the development of saving, foreign exchange and human resources. The
increase in demand for food leads to decrease in natural resources, which are needed for nation
to survive. Other negative effects of population growth include poverty caused by low income
per capital, famine, and disease since rapid population growth complicates the task of providing
and maintaining the infrastructure, education and health care needed. The third school of thought
is that population growth is a neutral factor in economic growth and is determined outside
standard growth models (Felmingham, 2004)
On the other hand, the existence of high rate of population growth is clearly observed as critical
challenges in the town. This situation necessitates research work to look at the issues in the area
closely and deeply in order to give clear descriptions of the problems, various urban dwellers and
administrator's point of view.
3
1.3 Research questions
- What are the main causes of rapid population growth in the Gimbitown?
- What are the social and economic impacts of rapid population growth in the study area?
The Impact of Population Growth and Unemployment on Living Standard Hues Holds In Case of
Gimbi Town
- To identify the impact of rapid population growth on Unemployment development in the study
area.
In Gimbitown in spite of its low economic development has registered, the number of population
growth is increasing at high rate from year to year. Although rapid population growth is there,
4
economic growth remains very low convergence to Malthus theory which says, food production
increasing in arithmetic progression whereas population growth is increasing in geometric
progression. This issue of relationship between them is still on debate and research work will
give a clue for further investigation on this area.
5
CHAPTER TWO
2. LITERATURE REVIEW
2.1. Theoretical literature review
2.1.1. Concept and definition of population growth
Population growth refers to change in the size of population which can be either positive or
negative over time, depending on the balance of births and deaths. If there are many deaths, the
world’s population will grow very slowly or can even decline. Population growth is measured in
both absolute and relative terms. Absolute grow this different in number between a populations
over time; for instance, in 1950 the world population was 4 billion and in 2000 it was 6 billion.
Relative growth usually expressed as a rate or a percentage. For instance, in 2000 the rate of
global population growth was 1.4 percent or (14 per 1000) for every 1000 people in the world,
14 more are being added per year (Peterson, William, 2000).
For the world as whole population grows to the extent that the number or the rate of birth
exceeds the number or rate of deaths. The difference between these numbers (or rates) is termed
'natural increase"(or natural decrease" if deaths exceeds births). For examples in 2000 there were
22 births per 1000 population (the number of births per 1000 is terms the "crude birth rate") and
9 death per 1000 population (the "create death rate"). These difference accounts for the 2000
population growth rate of natural increase. In absolute numbers, the means that approximately 78
million people or about the population of the Philippines are added to the world each year. For
countries, regions states and soon population growth results from combination of natural increase
and migration flows. The rate of natural increase is equivalent to the rate of population growth
only for the world as a whole and for any smaller geographical units that experience no
migration (population reference bureau, 2000).
6
and an inability to meet the basic needs of the current population. A large proportion of this
population is supported through substance agriculture. As population grow competition for
textile land and the used of limited resource increase meaning the increased demand for food is
probably the most basic challenge and the most salient population and environment
crises(TSEGA,2006).
Experience over the last couple of decades in Ethiopia as human numbers increased, the
population carrying capacity of the environment decreased. As high population growth rate
induces increased demand for resource as and the rate at which those resource are exploited. In
Ethiopia where technology has not kept pace with the demand for greater productivity,
environmentally counterproductive method of exploiting land and associated resources are
resorted in order to meet immediate needs. As a consequence of this limited conditions are
becoming erratic and soil quality is dealing at an alarming rate (DejeneAredo, 2012).
Popular awareness of conservation issue is still in its recent stage, it is estimated that over two
billion cubic meters of soil is being washed down, annually by torrential rain down, Nile valley
having most of Ethiopian high lands with seriously erode land escape and severely reduced
population carrying capacity.
As population increased the demand for fuel and construction materials weak and ineffective
organizational set up of the agricultural sector. Agriculture extension service are weak and
largely in effective. But more importantly, decline productivity is fashion increasing man land
ratio occasioned by rapid population growth.
Continued technological backwardness and absences any vision about what is look like in the
future have combined to render agricultural development policy and programs in effective. Land
use pattern have been affected by expansion of large scale agricultural enterprise and
programmed of relocating segments of population from one part of the country to another. It is
often that it is any small proportion of potential arable land that put lander crops. For instance, it
is reported that for the period 1985 and 1987 crop land represented 12% of total land areas,
pasture land 41% and wood land 25% and other land is 21.4%(Ibid).
7
2.1.3. Population growth and food production
Since the beginning of the 1970 in many countries of the sub - Saharan Africa, land degradation
highest rate of population growth have undermined all efforts to provide the population the
region with necessary goods and service including food .During this period average food
production precipitate has been falling by one percent per annum and the capacity of region to
feed itself has been and is declining (WSEP, 1987).
The situation of food in Ethiopia during the last successive three decades is largely dominated by
decline in domestic production. Ethiopia agriculture is dominated by small holder peasant
farming which contributes about 95% of the annual food production of the country. This sector is
dependent mainly on traditional substituent farming methods (with a very limited use of modern
technologies) and rainfall. There are several sides to the problem of declining productivity in the
crop producing sector. Among this are:-lack of a proper agricultural policy designed to stimulate
dynamism in the sector, force collectivization, the limited accessibility of modern factor in puts,
suitable farm implements, fertilizer, pest control systems, methods of harvesting and storage.
Health policy in Ethiopia is rooted in the primary health care approach which has health
education, education in personal and environmental hygiene, nutrition, immunization and family
planning for standard components. The network of health care services has always been limited
in scope and the situation deterioration in the face of intensified civil war. Rehabilitating the run
down health infrastructure restarting it to the status quant is, in itself a tremendous task in the
transitional period (Ministry of health, 2011/12).
It was established that around 1990, only 46% less of the population of Ethiopia lived within a
reasonable distance from health care facilities. The population/physician and population/nurse
rations were estimated at approximately 30,700 and 1500 respectively. Daily calories supply per
capita was established at 76% of the recommended daily intake. Only 18% of the rural and 78%
of urban population has access to safe water supply and 5.3% use any form of latrines. Clearly
even in terms of the necessity of life, the Ethiopia population is severely under served and there
8
is a long way to go in meeting these needs even in the most rudimentary manner. There will be
no basis for expecting that significant inroads would be made towards solving these basic health
problems, if the present high rate of population grows continues (IBID0).
The higher the population of school age people in a society, the more teachers are needed to
teach these students. This can place a strain on an already over taxed system. Many teachers are
moving to different profession for the monetary increase while those who stay are over burned
with the ever increasing nomber of students. Because of more rapid rate at which enrolment
increased relative to facilities the quality of education has seriously deteriorated. Student’s
teacher ratios, number of students per classroom and number of students per textbook at all level
have been increasing and continue to increase rapidly (Ministry of education, 2011/12).
Most school attempt to softer positive attitudes about education and learning. This attitude can
shift if the high population of the school becomes directed by other more negative attitudes and
ideas. These negative attitudes can include drag usage, gang mentalities and lack of education
idealism. This is especially true for that school that was previously prone to such distractions. A
lack of control can appear in schools with too many students and not enough teachers (Demand
Media, Inc).
Negative attitudes about schooling can carry on through a student's life resulting in lower chance
for those students to offend collage or other extended education. This lowers earning potential of
the students resulting in a possible poverty situation. Correcting the issues of population growth
in the educational system is necessary to prevent dropouts to coverage continued learning.
Schools need funds from the community to exist those community that have experienced a
population growth without economic growth may find resistance in the funding of the school.
This can lead to a lack of funding and insufficient funds to provide enrichment activities to the
students. This can result in the school becoming boring for students and lack of sport or other
activities when there is rapid population growth, schools may also find a lack of supplies to
cover the students in need(IBID).
9
2.2. Empirical Literature Review
Boserup (1965) found out that population growth is an autonomous factor, which affects
agricultural productivity rather than being affected by it, as suggested by the Malthusian school.
The study claimed that Malthus' assumption of diminishing returns to labor needs not hold in the
long run, as higher population may lead to a more efficient division of labor as well as to
improves agricultural practices (signaled by the frequency of cropping). The study concluded
that soil fertility should not be viewed as fixed and given by nature, but instead can be improved
by substituting the agricultural technology to better one, which is likely to be the result of an
increasing population. Primitive communities with higher population growth rates are more
likely to experience economic development, provided that the necessary investment in
agricultural in undertaken.
Thirlwal (1973) investigated the relationship between population growth and economic
development with special reference to developing economies. The study found out that the
relationship between population growth and economic development is a complex one,
particularly concerning what the cause is and what is the effect is. Rapid population growth
lowers per capita income growth in least developing countries (LDCs), yet there are many ways
in which population growth may be stimulus to progress, and there are many rational reasons
why families in developing countries choice to have many children’s. The study concluded that
complexity of the subject is compounded by the fact that, economic development is a
multidimensional concept. The pace of economic development depend on the diversion of
resources from consumption to use that raise future output. A population with high ratio of
dependents on producers consumes more of a given output and devotes less to investments.
Thus, high fertility, which produces a high level of dependency, promotes consumption at the
expense of investment.
Bloom and Freeman (1986) provided a comprehensive organizing frame work for analyzing
impact of population growth on labor supply and employment. In particular, they identified two
distinct mechanisms through which population growth affect labor supply and employment. One
is the "accounting" aspect that refers to change in the demographic structure and cohort size.
The other is the "behavioral" aspect that refers to the decision to participate in the labor force,
particularly for women. Fertility, mortality and migration will affect labor supply differently.
10
Mortality and migration will have immediate effects while fertility will have delayed effects.
They also pointed out that the structural of the labor market mediates the impact of population
growth employment. For instance, in neoclassical labor market rapid population growth will
instantaneously depress wages. In dual labor market where one market(modern) is behaving like
a new classical labor market and another(traditional) is characterized by surplus labor and low
wage rates, rapid population growth will delay the tightening of and eventual dissolution of the
wage traditional labor market (or the elimination of the dualistic structure). In their review of
labor markets in developing countries covering the period 1960-80, they concluded that despite
population increase rapidly, developing countries managed, on the whole, to improve their
economic positions significantly.
According to Kelley (1988) a lower the pace of population growth will help to enhance
economic growth at higher rate. The study elaborated the economic growth would be higher in
the situation of slower population growth even though the impact population growth in many
countries was insignificant. Population and per capita income are closely associated to depict the
picture of economic growth. Lower the population growth and the per capita income show the
nation achieve their growth targets. Countries with population growth under 1 percent, their per
capita income could increase at the rate of 2.5 percent annually. Countries with population
growth more than 2 percent had a little increase in per capita income of less than 2 percent.
Mankey [Link] (1992) used a Cobb-Douglas economy -wide production function to investigate the
impact of population growth on ‘steady state' income per capita as well as on economic growth
in transition to the steady state. They relieved out that unincreased in the population growth rate
of 10 % (e.g.3% to 3.3%) would reduce per capita income in the steady state by 5%. If, however,
one considered human to be an additional factor of production (which is eminently
reasonable),then the negative impact of population growth is larger as population growth now
forces economies to use their scarce savings to equip young people with physical and human
capital. As a result, a 1% increase in population growth would decrease per capita income by
2%.
Bloom and Williamson (1997) also found that demographic factors are important determinants of
economic growth. Their results shows that it is not overall population growth rate that drives
economic performance but age distribution. The age distribution effect operates through the
11
difference in growth rates of the working-age and the dependent population. The study found
that population dynamics explain as much as 1.4 to 1.9 percentage points of the GDP per capita
growth in East Asia or as much as one third of the average East Asian miracle GDP per capita
growth (1.9/6.1).In Southeast Asia, the estimated effect ranges from 0.9 to 1.8 points of
economic growth or about half (1.8/3.8) of the recorded growth in GDP per capita.
Bucci (2003) investigated whether there is a long run relationship between population (size and
growth) and per-capita income focusing on human and physical capital as reproducible inputs.
The study found out population growth exerts a negative effect on economic growth. However,
when individuals choose endogenously how much to save, population growth can also have a
neutral influence on economic growth. The study also extended its analysis to the case where
physical and human capital can interact with each other in the production of new human capital.
When the two types of capital are substitutes for each other in the education sector, the effect of
population growth on per capita income growth is always negative. Instead, if human and
physical capital is complementary for each other, the impact of population change on real per
capita income growth becomes ambiguous. The intuition is the following. For given per capita
physical capital stock, an increase of population causes the aggregate physical capital to rise. If
physical and human capital are substitutes for each other (in the sense that the larger amount of
physical capital now available in the economy deters the demand and, thus, the consequent
supply of human capital), the increase of population size, together with the reduction of the
aggregate human capital stock, determines an unambiguous decline of the per capita level of
skills and, via this channel, a lower per capita income growth rate. On the other hand, if physical
and human capital are complementary for each other (the increase in the supply of physical
capital spurs the demand and, therefore, the consequent production of new human capital), the
final effect on the per capita level of skills and, hence, on per capita income growth of an
increase in population may be either positive, or negative, or else equal to zero. Long run per
capita income growth can be positive even without any population change; in equilibrium both
the growth rate and the level of per capita income are independent of population size; the long-
run level of per capita income is proportional to per capita human capital.
12
CHAPTER THREE
Gimbitown is located in the West of the Oromia regional state and it is the zonal town of the East
Wollegazone. It is located at distance of 330 km from Addis Ababa on the main road that leads
to West region of Ethiopia. Gimbitown is established in 1915 and covers of 8587 hectares of
land. It is one of the oldest towns in Ethiopia (Gimbitown municipality, 2009).
Geographically location of Gimbitown is 5* 35'N latitude and 38*15' E longitude. The average
elevation of the town is 1716 meters above sea level. The town and its surrounding have mean
annual rainfall precipitation of 750mm-1500mm. The mean annual temperature of the town is
between 15 centigrade and 22.5 centigrade (minimum is 15 whereas 22.5 centigrade is
maximum). The town is an administrative capital for west Wollegazone. It provides township
plan prepared by the national planning institution. The master plan covers different aspects such
as development plans road network plans, drainage and land use plan etc. (Gimbietown
municipality, 2012).
13
3.4. Sampling method
The sampling of the study was taken from the households of Gimbitown. Thus, according to the
2012 census conducted by Gimbitown administration the town has 105,443 population or
23,410 households living in three kebele’s; from this, 100 households are taken as sample for the
study based on the Yamane formula and that selected sample size represents the remaining
households.
Once the sample sizes were determined, households from each kebele were selected by
systematic random sampling method. The sample households were selected in proportion to the
number of households in each kebele's. The list of households from each kebele's was used as
sampling frame.
Table 3.1. Sampling method and sample households from each kebele
1 01 6039 26
2 02 5363 24
3 03 7,008 29
4 05 5000 21
Where, N=total population, n=the required sample size, e=margin of error 10%. So, the
questionnaires distributed to 100 respondents in order to gather the needed information.
14
3.6. Method of data analysis
The collected data was processed and analyzed by using descriptive method of the data analysis
such as tabulation and percent. In general the research analyzed all the necessary collected data
analysis. In the study process tables are became the dominant mode of data presentation, so as to
get a clear and brief understanding of data analysis.
15
CHAPTER FOUR
Out of 100 interviewed sample households, 56 percent and 44 percent are male respondents and
female respondents respectively. The average age for these households ranges from the younger
(16 years old) to the elder (58 years old). The average household family size of the respondents
was 6.5, ranging from the lower of one person to the highest family size of 13 peoples. This
shows more of the Gimbitown residents are economically inactive and need more consumption
that negatively affects economic growth in the study area.
Conley (200) on U.S census data from 1980 and 1990 to examine the effect of the family size on
private school attendance and the probability a child is "held back". For him, to identify the
causal effect of family size, he uses the ideal that parents who have two same-sex children are
more likely to have a third child than equivalent parents with two opposite sex children.
As of the observance of the study conducted, the literature of Conley also there in Gimbitown,
which means when a women and her partner get female, they may face a problem from society's
point of view and retry again to get male. This shows that, due to gender gap, the probability of
holding large family size was seen in Gimbitown.
The empirical literatures on the effects of family size on child outcomes generally support a
negative relationship between family size and child quality.
16
4.1.2. Educational Status
Table 4.1. Educational status of sample respondents
1 Illiterate 10 10
2 Elementary 50 50
3 High school 26 26
4 Diploma 8 8
5 BA/BSc degree 6 6
There is more demonstrable correlation between female educational attainment and fertility.
Worldwide, women with no schooling have average of 4.5 children, while those who have spent
at least a year or more in primary school have just three. Women who complete at least a year of
two of secondary school have 0.9 children. With one or two years of advanced education for
women, average child bearing rates fall even further to 1.7(UN,2008).
As the above table shows, 50 percent of the sample households have an elementary educations
which is grade one to eight formal education in both traditional and modern schooling at earlier
ages. The second large group 26 percent is grade nine to twelve or high school education. Those
respondents who are diploma holders (including 10+1,10+2,10+3) and illiterate are 8 percent
and 10 percent respectively while the rest 6 percent of the simple respondents are university
degrees holder and above.
By comparing the family size of the respondents and their educational level, respondents whose
their educational level was elementary level has larger family size than those whose their
educational level is high school or diploma holders. Specially, from selected households, 10
percent of them were illiterate and the average household's family size of those respondents was
17
11. On this basis alone, those interested in depressing population growth rates might want to
focus on improving women's educational attainment.
1 Married 30 30
2 Single 45 45
3 Divorced 16 16
4 Widow 9 9
Regarding to the marital status of selected respondents, out of 100 of respondents in sample
formulation, 45 percent are single or never got married and 30 percent are married and the rest
16 percent and 9 percent are divorced and widow respectively.
From their response about 62 of respondents were failed to use birth controlling mechanism
while 38 percent are using it to reduce their family size.
18
Table: 4.3. Barriers to use contraceptive in reproductive age group of respondents
NO. Obstacles to use birth controlling Frequency Percentage
mechanism
Total 62 100
According to physical and reproductive specialist Malcolmapotts, in all countries where women
can choose from a range of contraceptive option, backed by access to safe and legal abortion
services, total fertility rates are at or below replacement fertility levels. Popular as it is the
women and couples contraception remains a deeply sensitive issue for much of the public.
Strongly opposed by the Catholic Church and regarded with suspicion by many other Christian,
Islamic, and even some Jewish religious leaders, open advocacy for contraceptive availability
and use in evitable risks stoking religious opposition. Influence of the Catholic Church hierarchy
has blocked efforts in the Philippines. For example, to included access to modern contraception
in the country's government
Perhaps, more destructive than religious opposition, is a relatively denigration in most cultures of
concerns that lie principally in the share of women. Access to contraception is clearly one such
concern, since women bear the babies and undergo most of the risks to life and health associated
with reproduction. At least since the rise of agriculture, urban and hierarchical societies, male
interests in reproduction have different markedly from those of women .Men are often anxious to
produce a multitude of future heirs, soldiers, laborers, farmers and followers. Women tend to be
strategically concerned with the survival and wellbeing of each of their children.
From the above table, majority of respondents (35.45 percent) refuses to use contraceptive or
birth controlling mechanism due to the influence of culture and 25.81 percent and 22.59 percent
were failed to use contraceptive method as a result of religious influence and lack of awareness
respectively while the rest 16.12 percent were not access to contraceptive due to lack of access to
facility.
19
Table: 4.4. Factors for the increment of family size of respondents
2 Rural-urban migration 38 38
Regarding to increment of family size from the table above, out of the total respondents, 62
percent of them proved that this fast and study growth of their family size to have been due to
fertility. Some official also claimed that after the economy system transform from socialism to
capitalism, job opportunity have increased due to construction activated, expand of investment
and trade in the Gimbitown. This intern invited a large number of rural migrates which increases
total population of GimbiTown. As official claimed it out of the total respondents 38% of them
that is as and steady growth of their family size have been due to immigration in the form of
relatives and other reasons.
This shows that migration is the fundamental factor for the urban population growth in the
Gimbitown next to fertility. The migration may be from lowland and high land of the
surrounding areas. Interviews with officials also proved that majority of low land farmers of
Oromo migrate to the town to move away from desert and its problems. More over the high land
farmers of Oromo migrate toward the town due to lack of farm land and depreciate of the farm
land.
To conclude both fertility and migration are the most factors that increase the rapid growth of
population and there by its consequences affect social and economic development.
20
Table: 4.5. Reason of unemployment for respondents
Total 59 100
According to muddy 2013, was negative relationship between economic growth and
unemployment. The first factor that may influence unemployment is economic growth.
Theoretically a high rate of economic growth may reduce unemployment as the entrepreneurs
and state become more capable.
Population growth rate is assumed to have a positive impact on unemployment. Hollister and
(Goldestien, 1994); produced results that the high population growth rate resulted in increase in
supply of labor force. As a result the rate of unemployment increases.
As shown in the table above, 50.9 percent of the respondents proved that the cause of
unemployment in the town is directly associated with rapid growth of population in the town.
However 31.5 percent and 18.5 percent of the respondents raises as there is lack of job and
having less interest for work respectively. Thus, some of them reason out that since the official
language of Oromia region is Afan Oromo and some of job seekers those who couldn't speak this
language were forced not to employ in the private owner ship and in some office of the
government. In general, main cause for unemployment by interview with official and by
questionnaires from respondents were highly associated with the rapid growth of urban
population from time to time.
21
4.1.6. Housing condition of respondents
About 54 percent of respondents of total respondents are not owned adequate living space or
house while 46 percent of them were response as they have their own housing space. From this
once can understand that there were the shortage of house in Gimbitown. Thus, the welfare of
society is suffered from storage of housing.
The quality of housing in Ethiopia, in general is exceedingly low. Data from the census of
population and housing of 1984 describes a grim picture of situation. Since one of the major
goals of development policy is improving the standard of living of the population, improvement
of housing condition is an item of concern with considerable implication for the health and
wellbeing of citizens (ministry of Housing and Urban Development).
There are a range of impacts resulting from the mismatch between population growth and
housing supply. Barker quotes, "we cannot have a rising population, spacious housing for each
households and an unchanged quantity of under developed country side" (Barker,2004)
Regarding to the table, 58 percent of the respondents reason out as increasing number of
population where the main reason for housing problem in Gimbitown while the next largest (22
percent) and (20 percent) responses as less capacity to construct house and less attention of
government for housing problem was the reason for housing problem in Gimbitown respectively.
22
4.1.7. Increment of price of food in the Gimbitown
1 Yes 77 77
2 No 23 23
There is reason to belief that food commodity prices will be both the higher and more volatile in
the decades to come. As climate change increase as the incidence of extreme whether events,
production shocks will become more frequent. Food prices will also likely be driven up by
population growth, increasing global affluence, stronger linkages between agricultural and
energy market, and natural resource constraints (FAO, 2000).
As every students of economics knows, price is a function of supply and demand. When demand
for a commodity rise on constraint supply, price usually rise. Conversely, where demand falls at
constant supply, prices usually fall. Rising supply on constant demand causes a fall in prices
while falling supply on constant demand causes price increase. So one could conclude that rising
food prices have been caused by falling supply or increased demand.
The higher demand for food is the most predictable for higher food prices which is driven both
by rising affluences which allows people to add more animal protein to their diets and rising
numbers of people. So long as the world economy continues to grow, we are likely to see dietary
shifts in many emerging economies, including those of china and Indians, which together are
home to more than 2.5 billion people. As more animal protein enters their diets further upward
pressure on food production and prices (Krugman,)
As show in the above table, 77 percent of the respondents have the response of increasing prices
of food and never access enough price of food. It is possible to say there was shortage of food
in the Gimbitown while 23 percent of the respondents were get enough price of food supply as
their response in the Gimbitown.
23
Among basic needs for life food is the basic and primary which must be take care for its
existence in each households home. Food security is directly determined by the number of
population. In other words the small number of population size can affect the price food with
positive relation. In least developing countries (LDC), due to high fertility rate the growth of
population increase at in an increasing rate. This unbalances grow can affect directly the prices
of the food.
Sanitation is one of the most indispensable facilities in human life. When accessed to and using
those facilities, enhance quality of health. Social wellbeing and economic productivity and
ensure all rounded development. In contrast inadequate sanitation has a negative impact on
households, communities, environments and countries (Chala Deyessa,2012)
Regarding to sanitation of respondents, about 58 percent of the responses as they didn’t access to
adequate sanitation, especially water sanitation as a result of unbalanced between demand and
supply in Gimbitown.
Total 58 100
24
As seen from the table above, from the selected respondents about 58.6 percent of them ,
increasing number of population were the cause for sanitary problem while 24.2 percent and
17.24 percent response as un availability of garbage disposition and unplanned construction of
house respectively were the causes of sanitary problems in Gimbitown.
4.2.1. Fertility
Fertility is positive factors of population changes which means it is th e increasing factors of
population. The following table shows the age group specific fertility, total fertility rate and
average fertility rate in Gimbitown (1997 and 2011).
Table: 4.8. Age group specific fertility: TFR and ATFR' in Gimbitown
Year
25
Table above indicates that, total fertility rate for ambo town in the year 1997 was 2.31% and in
the year 2011 it was 2.6%. The adjusted total fertility rate was 6.51% and 6.77% in the year 1997
and 2011 respectively. Thus, the total fertility rate in ambo town is increased from time to time
as shown in the above table. Therefore, the rapid population growth rate in the town leads a
reduction in resource-human ratio, per capital income and degradation of natural resources.
4.2.2. Mortality
Mortality is the population reducing factor. The mortality situation of an area indicates that the
level of living standard, health condition, socio economic, cultural, environment national and
other related factor of given population areas. As a demographic phenomenon, mortality
determines the size, the change and the structure of population of an area. Among others the
common measurement of mortality rate are the MR or infant mortality rate, and life expectancy
derived in the year down below;
Year
M F Average M F Average
F - Female
The above table indicate that 42% of the infant is died when they are born in the year 2000 and
46% of the total infant is died in 2004. Life expectance at birth is about 57.29% and 53.9% in the
26
year 2000, and 2004 respectively.
Infant mortality rate was increase from 42% to 46% and life expectancy at birth was decreased
from 57% 54% when the time is increased. Because rapid population growth results in shortage
of medical facilities, and poor living standard in the society.
4.2.3 Migration
Information on migration of the population is the direct interest to planning and implementing
agencies, because migration has direct effect on the demographic of population. Moreover, it has
integration with other demographic forces as well as other aspect Unemployementchanges.
Year Migration
The above table shows that, the number of out migrant of town in the year 2004, 2008, 2012 is
67,123 and 162 in respectively. Contrary to this, the number of migrant of the town in the year
2004, 2008, 2012 is 320, 670, and 820 respectively. The net migrant of the town is increased
from time to time. Thus, the additional services are needed to avoid the overcrowded use of
resources in the Gimbitown.
27
4.3.1 Impact of unemployment
Unemployment is one of the significant variables that depict the health of an economy. A higher
unemployment rate reflects the people are not earning according to their desire and ability.
Unemployment is not a health sign for a country from social and economic point of view. It
causes poverty, crime, and social unrest.
The problem of unemployment is raised in situation where labor supply exceeds labor demand.
That means unbalanced employers and employees. Rapid population growth, lack of interest to
work, preference of job, low availabilities of job opportunities other becomes the major
challenge to get employment.
The above table shows during 2013 the level of unemployment was 766 in Gimbtown while in
the year 2016 this figure increase to 775. The increasing rate of unemployment in the Gimbtown
can have some Unemploymentproblems. Thus, Rapid population with low economic growth can
increase unemployment and Unemploymentproblems.
This imbalance between lower growth of health services and rapid population growth put a high
pressure on the existing health services and would result in deteriorating of health services.
28
Thus, rapid population growth with low economic growth can limit the supply of education
services and deteriorates its equality.
According to Gate foundation and Gap minder, reducing mortality causes the fertility of the
population (the number of children per women) to decrease. The long term effect of this will be
to reduce population growth.
Reducing mortality may actually decrease population growth. This may happen when parents
close to have large number of children because they rely on at least some of their children
surviving of provide for them in old age and carry on the family line age. If mortaliyt is high,
then parent will close to have more children to try to increase the odds that at least some of them
reach adulthood, If mortality is lowered, parents will have more confidence that their children
will reach adulthood. Therefore, their will have less of an incentives to conceive more children
(Ibid).
29
CHAPTER FIVE
5. 1 SUMMERY
Based on the study conducted with reference to the impact of rapid population growth on socio
economic development of Ethiopia in case of Gimbtown, it is concluded that the main
determinants of population growth of the town were high fertility rate, and increase in the rural-
urban migration. High birth rate and immigration raise the population growth whereas mortality
and out migration reduces population of Gimbtown.
5.2. Conclusion
Mostly, the study confirmed that the impact of rapid population growth is the result of
unbalanced growth between population and socio economic activities of the Gimbetown. Rapid
population growth of the town brought the shortage of social services provision, high
dependence ratio, low employment opportunities, degradation of natural resources and
environment when are the main impact of population that negatively affect the process of social
and economic development in the Gimbtown.
In general, as it was proved by study in Gimbtown the relationship between population growth
and economic development were negatively related due to unbalanced economic development
and population growth of the Gimbtown.
5.2. Recommendation
Based on the results of the study the following are forwarded as recommendation. To reduce the
impact of rapid population growth in the own government and the administrative body of
Gimbtown and the residents of the town should play an important role
Government
Government should reduce population growth in the town through well conducted population
policy that can solve the impact of main population plan such as:-
- Encourage research and development on the impact of rapid population growth on socio
economic development.
30
- Giving attention to open opportunities for rural residents by creating employment
opportunities there by reduce migration from rural areas.
- Strengthen social, cultural, and economic motivations for couples to have small families.
- Expanding the coverage of family planning service delivery through clinical and
community based outreach services;
Gimbtown administrative
The Gimbitown administrative should play roles to reduce a rapid population growth and
its impact on socio economic development of town by taking some measurements as follows;
- Raising the economic and social status of women as they have more responsibility of
rearing or bearing of children than men;
- Increasing social awareness the impact of rapid population growth on the socio economic
development.
- Encouraging and awarding people to use natural and artificial method of bears control.
- Encouraging religious leaders to teach about family planning as they are more acceptable
than any political lender to their followers;
31
REFERENCE
Barker, R. (1986) "The effect of Rapid Population Growth on Supply and Employment in
Developing Countries" Population and Development Review, pp. 381-414.
Ajayi, A. and Kovole,J.(1998) " Kenya's Population polcy : From Aparthy to Effectiveness" Do
Population.
David Roodman, Steven R.(1993), Population and Environmental Dynamism, Published in press
New York oxford University.
Abebe (2004); Ethiopia, labor forces and job opportunities in urban centers, Addis A baba,
Ethiopia.
Ethiopian Economic Associations (2009); annual report on the Ethiopian economy on various
years.
DejeneAredo (2000); agricultural growth, population and environmental nexus paper prepared to
the tenth annual conference on the Ethiopian economy, Adama.
Bloom, D, E., and Freeman R., E. (1998) ‘Economic Development and the Timing and
Components of Population growth’ Journal of policy Modeling 10(1),57-81
Boser. P.E.(1965), The conditions of Agricultural Growth; The Economics Of Agrarian change
Under Population Pressure. London.
Bucci, A.(2003) “Population Growth in a Model of Economic Growth with Human Capital
Accumulation and Horizontal R&D”Universally of Milan:Milan,
Central statistics authority (2003); Anatomical report on the national labor forces, Addis Ababa
Ethiopia,
DejeneAredo (2000); Agricultural growth, Population and environmental nexus paper prepared
to the tenth annual conference on the Ethiopian Economy
Ethiopian Economic association (2009); annual report on the Ethiopian economy on various
years,
32
Gillard, Richard (1963); Economic development past and present published press in London,
Tsega (2009); Examining the link between population and economic growth in Ethiopia,
Published, Addis Abab, Ethiopia,
Martin, p, (2009) “Demographic and Economic trends: Implication for international mobility”
United nations development Programme Human Development Report’ Research paper
2009/17
Minister of Education (2009/10); Annual education statistical abstracts, Addis Ababa, Ethiopia,
Minister of Health; (2009/10); Annual health statistical abstracts, Addis Ababa, Ethiopia,
Srinivasan, T.N, (1988); “Population growth and Economic development” Journal of policy
Modeling, Vol.10, No.1, [Link].7-28
Malcosmapotts, (1995); Population geography, second ed. Published in oxford university, New
York.
33
NEKEMTE UNIVERSITY
DEPARTMENT OF ECONOMICS
QUESTIONNAIRE
This questionnaire is prepared to obtain essential and relevant data on the impact of rapid
population growth on socio economic development in Gimbtown. Your response will provide a
major input for our senior essay and it is purely conducted for academic purposes. Therefore, the
respondent is kindly requested to provide his/her valid responses to the sets of questions included
in the questionnaires. All your responses remain confidential. The researchers would like to be
grateful for the sacrifice you will pay in completing this questionnaire.
Put tick ( or X mark) in the box and for open ended questions write your response on the space
provided.
34
5. Educational level; above grade 12 high school diploma
Degree
Illiterate elementary
10. If you answer question number (9) is no, which is factoring that, impede you from using
the contraceptive? Culture lack of good facility unawareness
11. Is the rapid population growth in town worse off or better off for the inhabitants
including? Better off worse off
12. If your answer question number (11) is worse off, what is the problem?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………
35
13. Do you think that is there unemployment in Nekemtetown? Yes No
14. If your answer for question number (13) is yes, what is the reason for this problem?
Rapid population growth Lack of job Having less interest for work
16. If your answer for question number (15) is yes, what is the problem do you think?
18. If your answer question number (16) is yes, what is the reason?
19. D you think that is thereany increase in price of food in the town? Yes No
20. If your answer question number (19) is yes, what is the reason for rise of the food price?
36
21. Is there any measure taken by the government or people to alleviate the above mentioned
problem if exist? Yes No
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………
37
Fertility and migration are critical drivers of population growth in Gimbitown. High fertility rates contribute directly to increases in family size and overall population numbers. Simultaneously, rural-urban migration brings newcomers seeking employment and better living conditions, further boosting population figures. While these factors can potentially increase labor supply, they also put pressure on existing infrastructure and resources, challenging sustainable development. Therefore, both factors significantly influence Gimbitown's demographic dynamics and socio-economic challenges .
Migration significantly contributes to urban population growth in Gimbitown. It accounts for 38% of the town's family size increase, primarily driven by rural migrants seeking employment and improved living conditions due to economic opportunities like construction and trade. This migration is fueled by factors such as environmental degradation in rural areas and the search for better economic prospects in urban centers, making it a fundamental factor in urban population dynamics .
The relationship between population growth and economic development in least developed countries (LDCs) is viewed as complex and multifaceted. While rapid population growth may depress per capita income growth by promoting consumption at the expense of investment, it can also stimulate progress in certain conditions. High fertility rates increase dependency ratios, leading to higher consumption and less investment in future outputs. However, strategic population growth may support economic development through increased labor supply or other mechanisms, depending on the social and economic structure .
Population growth exerts substantial pressure on health and education services in urban areas, leading to overcrowded facilities and resource strain. The imbalance between the increasing demand and slow growth in service provision results in diminished quality of care and educational opportunities. For instance, rapid population growth in Gimbitown has led to overburdened health services and overcrowded classrooms, necessitating significant investment in infrastructure to cope with increased demand but failing to adequately meet the needs .
The document proposes several solutions to address rapid population growth in urban areas like Gimbitown. These include creating employment opportunities in rural areas to reduce rural-urban migration, strengthening motivations for smaller families, expanding family planning services, improving women's economic and social status, and raising awareness about the socio-economic impacts of rapid population growth. Additionally, encouraging religious leaders to promote family planning and investing in job creation through foreign and domestic investments are recommended strategies .
Cultural and religious factors significantly inhibit the use of contraceptives. Cultural influences are the primary obstacle for many, as 35.48% of respondents cited them as reasons for not using birth control. Religious influences are also significant, preventing 25.81% from using contraceptives. These barriers reflect broader societal norms and beliefs that can hinder the adoption of family planning methods, thus affecting fertility rates and population growth .
Rapid population growth in Gimbitown has led to a mismatch between the population increase and available housing, resulting in a shortage that affects living standards. This exacerbates socio-economic issues, such as increased dependence ratios and environmental degradation. The housing problem is primarily driven by the growing population, which exceeds the capacity for new housing development. Additionally, the economic burden of providing adequate housing and necessary social services strains local resources, ultimately impeding socio-economic development .
High population growth contributes to increased unemployment as it adds to the supply of labor without a corresponding increase in demand. This results in more job seekers than available positions, driving up unemployment rates. Additionally, rapid population growth puts pressure on economic and social resources, which can stifle job creation and economic opportunities .
Economic growth and birth rates are closely correlated, where slower population growth is linked to higher per capita income growth, indicating better economic performance. Countries with lower growth rates under 1% tend to show an annual per capita income increase of 2.5%. Thus, controlling birth rates can potentially enhance economic growth by promoting higher investment per capita and reducing dependency ratios, which frees up resources for economic and social development .
Bloom and Freeman identified two main mechanisms through which population growth affects labor supply and employment: the 'accounting' aspect and the 'behavioral' aspect. The accounting aspect refers to changes in demographic structure and cohort size, while the behavioral aspect involves decisions to participate in the labor force, particularly among women. These mechanisms highlight the complexity of how population growth influences labor markets differently, based on the structure of the labor market and cultural contexts .