Population age structure as a determinant of long-run macroeconomic growth: demographic endogenous growth theory

Banda, Mutisunge Allan (2024): Population age structure as a determinant of long-run macroeconomic growth: demographic endogenous growth theory.

Abstract

Just as human age is a key determinant of individual economic productivity, a population’s age structure is a significant causal factor of economic productivity and growth. This paper attempts to update the traditional theories of economic growth by incorporating demographic transition theory and intergenerational transfers into long run economic growth. Whereas contemporary theory interprets the demographic dividend as a transitory and uncertain exogenous stimulant to economic growth, this paper will attempt to demonstrate that age structure is instead a persistent and endogenous determinant of economic productivity. In addition, the paper will argue that a significant portion of modern and ancient economic divergence can be explained by variations in age structure. These findings will have important implications for policymakers and researchers interested economic development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Demographic Economics; Economic Growth; Economic Theory; Macroeconomics; Quantitative Methods
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; J - Labor and Demographic Economics > J1 - Demographic Economics; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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