Effect of Demographic Dividends on China’s Export

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Recommended: Human population growth trends

Today, with over 1.3 billion people, China has the largest population of any country (“Countries of the World”). China’s death rate had decreased since the Communist Party entered in 1949 owing to their policies of equal distribution of food and control of communicable diseases (Naughton 163). Due to the Great Chinese famine the population in those years greatly decreased due to death and the deferment of births. Following the famine “replacement births” drastically increased the population in 1963 (Naughton 166). The increased population resulted in an echo of births 20 years later, when the baby boom children came to child birthing age (Yang). In addition, starting in 1953 China started promoting family planning, finally implementing the one-child policy in September of 1980 (Naughton 168). The baby boom, along with its echo and the one-child policy lead to a compressed and accelerated demographic transition than most countries experience. This resulted in a proportionally large population of working age, leading to a low dependency ratio. China’s large population as well as its low dependency ratio has been significantly responsible for China’s economic growth due to export.

It is essential to note that without the WTO and other political factor’s China’s population growth would not have been as economically beneficial as it has been. However, even between 1982 to 2000, before China joined the WTO, the demographic dividend accounted for 15% of the economic growth (Feng and Mason). A low age dependency ratio leads “to more rapid growth of per capita GDP”, partly because a large proportion of the population is economically productive (Naughton 174).

One of the reasons for the demographic dividend is that as women have fewer c...

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... of Foreign Direct Investment on China’s Economy.” Organization for Economic Co-operation and Development. OECD, Dec. 2000. Web. 29 Oct. 2011. .

Mbekeani, Kennedy K. “The Role of Infrastructure in Determining Export Competitiveness: Framework Paper.” African Economic Research Consortium. African Economic Research Consortium, 2007. Web. 31 Oct. 2011. .

Naughton, Barry. The Chinese Economy, Transitions and Growth. England: MIT P, 2007. Print.

Ross, John. “Understanding the Demographic Dividend.” Policy Project. POLICY Project, Sept. 2004. Web. 29 Oct. 2011. .

Yang, Yao. “China’s Growth Model and Its Implications.” University of Wisconsin-Madison. Address.

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