Topic > Effect of Demographic Dividends on Chinese Exports

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 due 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 decreased significantly due to deaths and the postponement of births. Following the famine “replacement births” dramatically increased the population in 1963 (Naughton 166). The increase in population caused an echo of births 20 years later, when the baby boomers reached childbearing age (Yang). Furthermore, starting in 1953, China began to promote family planning, finally implementing the one-child policy in September 1980 (Naughton 168). The baby boom, together with its echoes and the one-child policy, lead to a compressed and accelerated demographic transition compared to that experienced by most countries. This has resulted in a proportionately large working-age population, resulting in a low dependency ratio. China's large population and low dependency ratio have been significantly responsible for the country's economic growth through exports. It is essential to note that without the WTO and other political factors, China's population growth would not have been as economically beneficial as it has been. However, even between 1982 and 2000, before China entered the WTO, the demographic dividend accounted for 15% of economic growth (Feng and Mason). A low age dependency ratio leads “to faster growth in GDP per capita,” in part because much of the population is economically productive (Naughton 174). One reason for the demographic dividend is that because women have fewer resources. .... half of the document ...... of foreign direct investment into the Chinese economy.” Organization for Economic Co-operation and Development. OECD, December 2000. Web. 29 October 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 October 2011. .Naughton, Barry. The Chinese economy, transitions and growth. England: MIT P, 2007. Print.Ross, John. “Understanding the demographic dividend.” Political project. POLICY Project, September 2004. Web. 29 October 2011. .Yang, Yao. “China's growth model and its implications.” University of Wisconsin-Madison. Address.