Population Trap-Reality or Illusion: Relationship Between Population Size and GNI Per Capita
GNI per capita has become an important indicator in determining that economic growth of any country. Accordingly, this paper investigates the relationship between Population size and GNI per capita for SAARC member states for period 2009-2013. As a remedial measure for diseases of auto-correlation and heteroskedasticity, fixed effects with Driscoll & Kraay standard error is used for estimation. The effect of population on gross national income per capita is found to be significant and positive. Recommendations are made to policy attention and investment direction towards enhancing the skill level of the population so that it may prove to be beneficial for the economy.