Impact of Demographic Dividend on the Economy of Developed and Developing Countries

Abstract

There is a close relationship between demographic transition and demographic dividend. Because of a demographic dividend is created by the process of the demographic transition. The “Demographic Dividend” “Demographic window of opportunity” or “demographic bonus” would have a positive impact on economic growth. This study has paid attention whether the demographic dividend has affected to the economic growth in developed and developing countries. The study mainly based on secondary data and to examine the impact of demographic dividend on economic growth, descriptive analysis method were adopted. According to the study, there is a great influence of demographic dividend on economic growth of many countries in the world. Already the cases of “East Asian Tigers” prove that the demographic bonus can contribute to accelerate economic growth. The issue is whether other countries undergoing the transition can reap similar benefits. The success of economies have been attributed to a number of factors; such as, well educated labour force, favorable global economy, an innovative dynamic business sector, industrial policies that supported development of key sectors and high rate of savings etc. However, for countries to realize this bonus, their economies must be strong enough to absorb the growing labour force without increasing unemployment or depressing wages.