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The Relationship between Fertility Rate and Economic Growth in Developing Countries

Li, Yujie LU (2016) EKHM53 20151
Department of Economic History
Abstract
The relationship between fertility rate and economic growth is an important subject. This thesis sums up the current research status and use in regression and correlation data analysis, which consists of 120 developing countries in total from 1970 to 2014. On the one hand, total fertility rate has a negative effect on economic growth in the current period. When human capital is scarce, returns of investment on human capital will be lower than investment in offspring. As a result, in a society with limited quantity of human capital, people tend to choose higher fertility rate and invest little in each child. On the other hand, economic growth appears at the beginning of the high fertility rate; with the acceleration of economic growth, the... (More)
The relationship between fertility rate and economic growth is an important subject. This thesis sums up the current research status and use in regression and correlation data analysis, which consists of 120 developing countries in total from 1970 to 2014. On the one hand, total fertility rate has a negative effect on economic growth in the current period. When human capital is scarce, returns of investment on human capital will be lower than investment in offspring. As a result, in a society with limited quantity of human capital, people tend to choose higher fertility rate and invest little in each child. On the other hand, economic growth appears at the beginning of the high fertility rate; with the acceleration of economic growth, the fertility rate declines. Human capital investment had an increased effect of scale returns in declining fertility of economic development; if human capital is higher, investing in human capital will get higher returns; this encourages more investment in human capital and less on having offspring and along with faster economic growth. (Less)
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author
Li, Yujie LU
supervisor
organization
course
EKHM53 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
human capital, demographic dividend, economic growth, Total fertility rate
language
English
id
8727479
date added to LUP
2016-02-25 13:43:41
date last changed
2016-02-25 13:43:41
@misc{8727479,
  abstract     = {The relationship between fertility rate and economic growth is an important subject. This thesis sums up the current research status and use in regression and correlation data analysis, which consists of 120 developing countries in total from 1970 to 2014. On the one hand, total fertility rate has a negative effect on economic growth in the current period. When human capital is scarce, returns of investment on human capital will be lower than investment in offspring. As a result, in a society with limited quantity of human capital, people tend to choose higher fertility rate and invest little in each child. On the other hand, economic growth appears at the beginning of the high fertility rate; with the acceleration of economic growth, the fertility rate declines. Human capital investment had an increased effect of scale returns in declining fertility of economic development; if human capital is higher, investing in human capital will get higher returns; this encourages more investment in human capital and less on having offspring and along with faster economic growth.},
  author       = {Li, Yujie},
  keyword      = {human capital,demographic dividend,economic growth,Total fertility rate},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Relationship between Fertility Rate and Economic Growth in Developing Countries},
  year         = {2016},
}