RESEARCH PROPOSAL

LEADSTAR CHIRISTIAN UNIVERSITY INANGO CAMPUS

DEPARTMENT OF MANAGEMENT

MASTERS PROGRAM
IMPACT OF POPULATION GROWTH & UNEMPLOYEMENT ON LIVING
STANDARD HOUSE HOLD

(IN CASE OF INANGO TOWN)

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MA MASTERS

PROGRAM MANAGEMENT

ADVISOR: - YOMIFAN MOTI(DR)

PREPARED BY: - MEZGEBU DIRBEBA DENFA

NOVEMBER 2023

INANGO, ETHIOPIA

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Contents
Acknowledgment.........................................................................................................................................ii
ABSTRACT...................................................................................................................................................iii
CHAPTER ONE..............................................................................................................................................1
[Link]........................................................................................................................................1
1.1 Background of the study....................................................................................................................1
1.2 Statement of the problem.................................................................................................................2
1.3 Research questions............................................................................................................................3
1.4 Objectives of the study......................................................................................................................3
1.4.1 General objectives......................................................................................................................3
1.4.2 Specific objective of the study....................................................................................................3
1.5 Significance of the study........................................................................................................................3
1.6 Scope of the study.............................................................................................................................4
1.7. Limitation of the study......................................................................................................................4
1.8 Organization of the study..................................................................................................................4
2.1. Theoretical literature review............................................................................................................5
2.1.1. Concept and definition of population growth............................................................................5
2.1.2 Population growth and environment..........................................................................................5
2.1.3. Population growth and food production...................................................................................6
2.2. Empirical Literature Review..............................................................................................................7
3.1 Background of the study......................................................................................................................11
3.2 Sources of data................................................................................................................................11
3.3 Method of data collection................................................................................................................11
3.4. Sampling method Sample size........................................................................................................12
3.6. Method of data analysis.................................................................................................................12
[Link] and Time.....................................................................................................................................13
4.1Time plan..............................................................................................................................................13
Table 1.1....................................................................................................................................................13
4.2Budget plan......................................................................................................................................14
Table 1.2...............................................................................................................................................14
[Link].............................................................................................................................................15

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[Link]...................................................................................................................................16

Acknowledgment
First of all thanks be to the Lord Jesus Christ for the better health and wellbeing he given to me
that were necessary to complete this proposal. I wish to express my sincere thanks to my
Advanced Research Methodology Instructor Yomifen Moti (Dr.) for his sincere and valuable
guidance and instruction extended to me. I also place on record, my sense of gratitude to
everyone who supported me throughout the course of this proposal work.
I am thankful for those who were giving me their aspiring guidance, invaluably constructive
advice and for sharing me their truthful and illuminating experiences on a number of issues
related to the proposal.
Specially I want to thanks my families for their support and encouragenment in all my
[Link] also like to say thanks to the staff of Inango town municipality for their effort in
providing relevant data for this paper.
Finally, I appreciate gratefully those people who will supports me to finish the work of my
research proposal study.

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ABSTRACT
The main objective of this study will be, to assess the impact of rapid population growth on
socio economic development of Ethiopia in Inango town. To conduct the study, the researcher
will be using both secondary and primary data. The primary data will be collected from
respondents through questionnaires and secondary data will be obtained from different
documents. The systematic random sampling method will used to select twenty five (25)
households. To analyze the data, the data will be used the descriptive method of data analysis.
Based on the study conducted with reference to the title, it will be 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

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Key Words: rapid, population, development

ACRONYMS

CSA – Central Intelligence Agency

GDP – Gross Domestic Product

LDC – Least Developing Countries

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CHAPTER ONE

[Link]
1.1 Background 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).

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 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.

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).

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1.2 Statement of the problem

There is continued divergence of opinions regarding consequences of population growth on
economic growth. The debate between the positive impact and negative impact of population
growth on economy is thus still ongoing .On the positive side; population growth induces
technological advancement and innovations. This is because population growth encourages
competition in business activities and, as the country's population grows, the sizes its potential
market expands as well. The expansion of market, in its run, encourages entrepreneurs to set up
new businesses (Simon 1992).

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)

Early studies conducted on impact of rapid population growth on Unemployment development

was rare and even if exit, it is on international and national levels focused mainly on rural areas
and big cities. But in small and medium focus like Necmettin not adequate research yet carried
out. Furthermore, Inango is one of the third tertiary towns of the country with urbanization. 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.

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1.3 Research questions

The study contains the following research questions

- What are the main causes of rapid population growth in the Inango town?

- What are the social and economic impacts of rapid population growth in the study area?

1.4 Objectives of the study

1.4.1 General objectives
The Impact of Population Growth and Unemployment on Living Standard Hues Holds In Case of
Inango Town

1.4.2 Specific objective of the study

The specific objectives of the study are:

- To identify the impact of rapid population growth on Unemployment development in the study
area.

- To identify the relationship between population growth and economic growth.

- To investigate cause of population growth in the study area.

1.5 Significance of the study

Most of the studies out so far in regarding relationship between population growth and economic
development both in developed and less developed countries over the year’s yields different out
comes from economists to other economists and the issues of relationship between population
growth and economies development remain controversial.

In Inango town, 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, 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.

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1.6 Scope of the study

The study will be focused on the impact of rapid population growth on different Unemployment
activities of Inango town. Due to financial and time shortage other areas are not included in the
study. The research will be conducted based on the availability of data in the different period of
time. Based on the given data the study will be assessed the impact of rapid population on
different Unemployment activities in the study area.

1.7. Limitation of the study

There will be a certain limitations while conducting the study. The major limitations that will be
challenge the effectiveness of work will be lack of available current data profile, limited access
to computer to get available data. Again the success of the work may be to some extent
hampered by the fact that data differ from one source to other. Data from United Nation for
instance, may sometimes different from that of Ethiopian Central Statistical Authority
(CSA) .The differences in data will be present a problem of choice of appropriate data to use for
the study.

1.8 Organization of the study

The research will be structured to cover five chapters. The subsequent chapter presents the
critical and empirical literature review of the impact on rapid population growth on
Unemployment development; chapter three will discusses the methodology whereas chapter four
presents analyzing data and interpretation results. The final chapter (chapter five) will
summarizes, concludes and provides policy recommendations.

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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).

2.1.2 Population growth and environment

The relationship between population growth and environment degradation may appear to be
rather straight forward. More people demand more resources and generate more waste. Clearly
one of the challenges of a growing population is the mere presence of so many people sharing
limited number of resources strains the environment. Many of the world's population live in poor
countries already strained by food insecurity, inadequate sanitation, water supply and housing
and an inability to meet the basic needs of the current population. A large proportion of this

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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 (Dejene Aredo, 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).

2.1.3. Population growth and food production

Since the beginning of the 1970 in many countries of the sub - Saharan Africa, land degradation
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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.

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

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complexity of the subject is compounded by the fact that, economic development is a

multidimensional concept. The pace of economic development depends 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.
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.

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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 show that it is not overall population growth rate that drives
economic performance but age distribution. The age distribution effect operates through the
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

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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.

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CHAPTER THREE
[Link] OF THE STUDY

3.1 Background of the study

Inango town is located in the West of the Oromia regional state. It is located at distance of 464
km from Addis Ababa on the main road that leads to West region of Ethiopia. Inango town is
established in 1969 and covers of 1131.056 hectares of land. It is one of the oldest towns in
Ethiopia (Inango town municipality, 2011).

Geographically location of Inango town is 5* 35'N latitude and 38*15' E longitude. The average
elevation of the town is 1650 meters above sea level. The town and its surrounding have mean
annual rainfall precipitation of 1200mm-1850mm. The mean annual temperature of the town is
between 23 centigrade and 25 centigrade (minimum is 23 whereas 25 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. (Inango town
municipality, 2012).

3.2 Sources of data

All the necessary data required for the study will be obtained from both primary and secondary
source by multiple tools of data collection. Primary data will be obtained from randomly selected
respondent through questionnaire's and interview whereas secondary sources of data will
gathered from published and unpublished and different documentation of different sources.

3.3 Method of data collection

First, a structured questionnaire will be prepared in English and some of the questionnaires will
be translated into Afan Oromo for those who couldn't write and read in English. This
questionnaire will allow respondents to express their feeling and suggesting freely and openly
without enforcement of the research work. The questionnaires will consist of two types of
question which is open and closed ended question.

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3.4. Sampling method Sample size

The sampling of the study will be taken from the households of Inango town. Thus, according to
the 2015 census conducted by Inango town administration the town has 10,718 population or
10500 households living in two kebele’s; from this, 25 households will be taken as a sample for
the study and that selected sample size represents the remaining households.

Once the sample sizes will determined, households from each kebele will be selected by
systematic random sampling method.

3.6. Method of data analysis

The collected data will be processed and analyzed by using descriptive method of the data
analysis such as tabulation and percent. In general the research will be 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.

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[Link] and Time

4.1Time plan
The time plan to conduct the study will state as follows
2023/4 G.C.
Details Aug. Sep. Oct Nov. Dec Jan Fe Mar. Ap May
. . . b. r. .

Topic selection X
Gather Review of literature
and preparation of
X X X
questionnaire
Distribution of questionnaires X

Collection questionnaire X
papers
Data compilation X
Data analysis X X
Thesis writing X X

Contact adviser X

Draft submission X

Final thesis submission X

Table 1.1

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4.2Budget plan
The following table will show that the amount of money will be needed to conduct the study

Materials Amount Unit cost Total Remark

needed

A4 paper 1pack. - 800

Pen 2 25.00 50

Transportation - - 300

Inviting and Coffee - 1500

discuss with
Tea
respondents

Binder and 4 300 1200

fastener

Mobile cards 6 100 600

internet

Secretary and 75 pages 10.00 750

typing

Total 5200

Table 1.2

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[Link]
Central Statistics Authority (2003); Anatomical report on the national labor forces, Addis Ababa
Ethiopia.
Bucci, A. (2003) “Population Growth in a Model of Economic Growth with Human Capital
Accumulation and Horizontal R&D”Universally of Milan:Milan.
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.
Malthus .T, (1798); An essay on the principles of population, (Cambrigde:Cambrigde).
Martin, p, (2009) “Demographic and Economic trends: Implication for international mobility”
United Nations development Programme Human Development Report’ Research paper
2009/17.

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[Link]
This questionnaire is prepared to obtain essential and relevant data on the impact of rapid
population growth on socio economic development in Inango town. 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.
Back ground of the respondent
Sex: Male Female
Age: 16-21 year 22-30 year 30-40 year above
Place of residence: town……………………. ……. Kebele………………………………………………
Place of birth: town……………………………………. Other place……………………………………..
Educational level; above grade 12 high school diploma Degree
Illiterate elementary
Marital status: single married widowed divorced
Family size: 1-3 4-6 7-10 11-13 above 13
What is the reason for increasing family size? Migration fertility
Do you use birth control mechanism? Yes No
If you answer question number (9) is no, which is factoring that, impede you from using the
contraceptive? Culture lack of good facility unawareness
Is the rapid population growth in town worse off or better off for the inhabitants including?
Better off worse off
If your answer question number (11) is worse off, what is the problem?
……………………………………………………………………………………………………………………………………………………
……………………………………………………………………
Do you think that is there unemployment in Inango town? Yes No
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
Do you think that there is housing problem in Inango town? Yes No

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If your answer for question number (15) is yes, what is the problem do you think?
Increasing number of population
Less attention of governmental for housing problem
Less capacity of the resident to construction housing
Do you think that there is sanitary problem in Inango town? Yes No
If your answer question number (16) is yes, what is the reason?
Unplanned construction of houses unavailability of garbage dispersion
Increasing number of population
D you think that is there any increase in price of food in the town? Yes No
If your answer question number (19) is yes, what is the reason for rise of the food price?
Shortage of supply increasing number of population
Is there any measure taken by the government or people to alleviate the above mentioned
problem if exist? Yes No
If your answer is yes in question (21) please mention it
……………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………

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