China’s Economic Growth and Demographic Structure Essay

Wei and Hao (2010) argue that changes in demographic building down helped fuel mainland chinawares economic crop since 1989. Demographic complex body part is described as the age distri preciselyion of a population (Wei & Hao, 2010) and is commonly mensurable by the total dependence ratio, which is the ratio of the total subdue of the dependent population to that of the working-age population. The economic festering refers to the income growth in mainland China, measured by Chinas per capita GDP. 2. The relation among Chinas economic growth and demographic structure Changes in demographic structure affected the economic growth in China, mostly in the considerable run (Wei & Hao, 2010).The decline in the dependency ratio accounted for about one-sixth of the provincial growth rate of GDP per capita in 1989-2004 (Wei & Hao, 2010). Declining dependency judge imply that the working-age population is growing more rapidly than the population as a whole which will lead to more ra pid growth of per capita GDP for any given increase in productivity per histrion (Naughton, 2007). In other words, there are more productive workers with worth(predicate) human capital. Particularly the lower youth dependency ratio, due to the increase levels of education and government policies like the one child policy, influenced the income growth in China.Furthermore, the launch of the market reform is found to have greatly modify the efficiency of the chore and capital markets (Wei & Hao, 2010) and thereby influence d the economic growth. Wei and Hao (2010) explain this by the effect of market reforms, which improved the flexibility of the labor market and the capital market and turned the expanded working-age population to oeuvre and translated accumulated savings into productive investment. Another aspect argued by Naughton (2007) is the transforming of China from predominantly low skill, hard physical labor to a middle-income thriftiness where education and skill begin to transform the nature of work for nigh(prenominal) workers. Wei and Hao (2010) also suggest that economic growth has helped to lower descent rate, discipline womens mean age at the first marriage and contain life expectancy. Due to Wei and Hao (2010) there is a reverse causality between demographic structure and economic growth.3. Impact of the One-Child polityAccording to Wei and Hao (2010) and Naughton (2007) the One-Child Policy has had important impacts on Chinas economic development but they also argue that it may need to be reconsidered. They argue that China is transitioning to an ageing society and if the one-child policy were to be relaxed, they expect birth rates to rise modestly and the rapid trend towards ageing would be ameliorated to some extent.In my opinion it is risky to change the one -child policy because I expect a fluctuating dependency ratio with periods of economic growth varied by periods with economic decline, because of the fluctuating working-age g roup. I think China needs to cope with one period with a high immemorial dependency ratio to reach a long period with a more stable total dependency ratio. In other words, I think it is necessary to close out periods varying from a high birth rate (allowed by the government) to a low birth rate (with policies to prevent the population to grow). Wei, Z. & Hao, R. (2010). Demographic structure and economic growth Evidence from China. diary of Comparative Economics, 38, 472-491. Naughton, B. (2007). The Chinese economy Transition and growth. Cambrigde MA The MIT Press.