Impact of Population Growth and One Child Policy on Economic Growth of China
25 Pages Posted: 10 Jul 2014
Date Written: July 10, 2014
This paper examines the relationship between population growth and economic growth of China at both the national level and provincial level. We base our specification on a version of neoclassical Solow model and incorporates the one child policy implemented in 1979 as a policy variable. At the national level, a 1% increase of population growth rate would facilitate a 1.7% increase in economic growth rate. However, the one child policy slowed down the population growth, which indirectly lowered the national economic growth. At the provincial level, the impact of population growth becomes negative after 1979 with every 1% increase in population growth decreasing GDP by 1.2%. The one child policy plays a statistically significant and positive role in provincial economic growth.
Keywords: population growth; economic growth; one child policy
JEL Classification: O20; O40
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