The Relationship between Population Growth and Economic Growth, with Emphasis on State's Expenses on Different Age Groups of Population

The present paper examines the short and long term relationship between the growth in the percentage of different age groups of population and economic growth in a dynamic model of Iran's economy. Therefore, bound test procedure is used to examine the existence of long term relationship, and autoregressive distributed lag model and error checking model are used to estimate the long term and short term coefficients of examined models, respectively. The results obtained from the analysis of relationships and significance of coefficients indicate that there is a positive and significant relationship between the percentage growth of population- the group ranging from 15 to 64 years old- and economic growth in Iran.