The Demographic Dividend and Economic growth: Empirical analysis

by Zilolakhon Makhmonova


According to the demographic transition theory, a country can reap the benefits of the demographic dividend throughout the period when working-age population is high whilst dependent population is low – enabling the country to have high levels of labor participation rates. The empirical literature on the effect of the demographic structure on economic growth was primarily concerned with the examination of the growth models using only working-age population share and overall dependency ratio as demographic variables. This paper attempts to contribute to the literature by empirically examining data of 145 countries for the period of 1992-2010 and investigating whether changes in decomposed dependency ratios (youth and old-age dependency ratios) are associated with changes in economic growth.