Analysis of the Effects of Working Population on Economic Growth in Kenya

Abstract

It is envisaged that Kenya will experience a demographic shift/transition due to changing patterns in fertility, mortality and population growth as well as socioeconomic factors. The transitioning from a ‘child-rich' phase to ‘young adult' phase will have an impact on the economy of the country. This study was aimed at examining the effects of working population on GDP in Kenya. Time-series data for the period 1963 – 2013 was used to find the causality between working population and economic growth and it showed that for every unit increase in working age population there is 4.102% increase in economic growth, therefore there is need to match population and economic parameters sustainably by creating an enabling business environment for private investors and increase state investments to utilize the existing labor force in Kenya.