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An empirical analysis of the relationship between economic development and population growth in China

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China has experienced a dramatic demographic transition since the latter half of the twentieth century, and thus, assessing the global economic implications is an important issue. This article uses time-series data on China to estimate the determinants of gross domestic product (GDP) per capita. According to the results of the presented co-integration analysis, population has a significantly negative impact on GDP per capita, while savings rate, total factor productivity and degree of industrialization have significantly positive impacts on GDP per capita. These results suggest that the share of the working-age population relative to the total population does not have a strong influence on GDP per capita. Therefore, the contribution of the working-age population to economic growth might not be as large as previously assumed. It is also possible that an increase in savings, remarkable industrialization and rapid technological progress have all stimulated economic growth in China greatly.
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Keywords: O33; O53; P23; VECM; economic development; population growth; ; population size

Document Type: Research Article

Affiliations: 1: School of Economics, Nankai University, Weijinlu, Nankai-Qu, Tianjin, 300071, China 2: Faculty of Economics, Kobe University, 2-1, Rokkodai, Nada-Ku, Kobe, 657-8501, Japan

Publication date: 2013-11-01

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