Impact of demographic dividend on economic growth in developing countries

This study investigates the impact of demographic dividends on economic growth by employing the dynamic common correlated effect (DCCE) as a panel data estimation technique. The analysis encompasses 71 developing countries from 1980 to 2019, further divided into lower- and higher-income countries. T...

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Main Authors: Yaqoob, Mohammad, Bani, Yasmin, Ishak, Suryati, Rosland, Anitha
Format: Article
Language:English
Published: Thammasat University 2024
Online Access:http://psasir.upm.edu.my/id/eprint/121206/
http://psasir.upm.edu.my/id/eprint/121206/1/121206.pdf
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author Yaqoob, Mohammad
Bani, Yasmin
Ishak, Suryati
Rosland, Anitha
author_facet Yaqoob, Mohammad
Bani, Yasmin
Ishak, Suryati
Rosland, Anitha
author_sort Yaqoob, Mohammad
building UPM Institutional Repository
collection Online Access
description This study investigates the impact of demographic dividends on economic growth by employing the dynamic common correlated effect (DCCE) as a panel data estimation technique. The analysis encompasses 71 developing countries from 1980 to 2019, further divided into lower- and higher-income countries. This study found that the demographic dividend, measured as the ratio of the working-age group in the population, significantly and positively influenced the economic expansion of overall developing countries and lower-income countries; however, the demographic dividend has an insignificant effect on higher-income countries. The results further demonstrate that the young population has a significant negative impact, and the elderly population positively affects economic growth. In addition to that, the study also found that physical capital per capita is negative, while human capital and trade openness offer a favourable outcome for economic growth. These results underscore the potential benefits of demographic change in most developing countries. However, investment in developing human and physical capital can enhance and promote the favourable effect of the working-age population ratio, fostering rapid economic growth.
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spelling upm-1212062025-10-29T02:41:23Z http://psasir.upm.edu.my/id/eprint/121206/ Impact of demographic dividend on economic growth in developing countries Yaqoob, Mohammad Bani, Yasmin Ishak, Suryati Rosland, Anitha This study investigates the impact of demographic dividends on economic growth by employing the dynamic common correlated effect (DCCE) as a panel data estimation technique. The analysis encompasses 71 developing countries from 1980 to 2019, further divided into lower- and higher-income countries. This study found that the demographic dividend, measured as the ratio of the working-age group in the population, significantly and positively influenced the economic expansion of overall developing countries and lower-income countries; however, the demographic dividend has an insignificant effect on higher-income countries. The results further demonstrate that the young population has a significant negative impact, and the elderly population positively affects economic growth. In addition to that, the study also found that physical capital per capita is negative, while human capital and trade openness offer a favourable outcome for economic growth. These results underscore the potential benefits of demographic change in most developing countries. However, investment in developing human and physical capital can enhance and promote the favourable effect of the working-age population ratio, fostering rapid economic growth. Thammasat University 2024-09-05 Article PeerReviewed text en cc_by_nc_nd_4 http://psasir.upm.edu.my/id/eprint/121206/1/121206.pdf Yaqoob, Mohammad and Bani, Yasmin and Ishak, Suryati and Rosland, Anitha (2024) Impact of demographic dividend on economic growth in developing countries. Thailand and the World Economy, 42 (3). pp. 236-252. ISSN 2630-0931; eISSN: 2651-0529 https://so05.tci-thaijo.org/index.php/TER/article/view/266126
spellingShingle Yaqoob, Mohammad
Bani, Yasmin
Ishak, Suryati
Rosland, Anitha
Impact of demographic dividend on economic growth in developing countries
title Impact of demographic dividend on economic growth in developing countries
title_full Impact of demographic dividend on economic growth in developing countries
title_fullStr Impact of demographic dividend on economic growth in developing countries
title_full_unstemmed Impact of demographic dividend on economic growth in developing countries
title_short Impact of demographic dividend on economic growth in developing countries
title_sort impact of demographic dividend on economic growth in developing countries
url http://psasir.upm.edu.my/id/eprint/121206/
http://psasir.upm.edu.my/id/eprint/121206/
http://psasir.upm.edu.my/id/eprint/121206/1/121206.pdf