Open AccessPopulation Composition and Its Effect on Economic Growth
Author(s) -
Deboshmita Brahma
Publication year - 2021
Publication title -
quest journal of management and social sciences
Language(s) - English
Resource type - Journals
eISSN - 2705-4535
pISSN - 2705-4527
DOI - 10.3126/qjmss.v3i1.37597
Subject(s) - dependency ratio , demographic dividend , gross domestic product , population , economics , per capita , population growth , per capita income , demographic economics , demographic transition , development economics , real gross domestic product , economic growth , demography , macroeconomics , fertility , sociology
Background: The relationship between population and economic growth has always been a subject of debate. There has never been any clear consensus amongst economists about the nature and extent of influence that population has on the economic growth of a country. Objective: This paper aims to explore the influence exerted by the age structure of the population on the economic growth of a country. Method: The paper uses secondary data to find the relation between Gross Domestic Product (GDP) per capita levels of countries and their respective Age Dependency Ratio.Result: There is a significant negative relationship between them, which implies that, if a country has a rise in a high proportion of the dependent population, per capita income will tend to be lower. Conclusion: The paper then makes a special study of the prospect of demographic dividend in India. The country is in the third phase of demographic transition, implying that the proportion of the working-age population is greater than the dependent population. This provides an ideal condition for the Government to reap the benefits of demographic dividend and achieve higher levels of economic growth.