How does demographic transition affect society?

How does demographic transition affect society?

Demographic change can influence the underlying growth rate of the economy, structural productivity growth, living standards, savings rates, consumption, and investment; it can influence the long-run unemployment rate and equilibrium interest rate, housing market trends, and the demand for financial assets.

How do demographics affect development?

Demographic change can influence the underlying growth rate of the economy, structural productivity growth, living standards, savings rates, consumption, and investment; it can influence the long‐​run unemployment rate and equilibrium interest rate, housing market trends, and the demand for financial assets.

How does the demographic transition model link to development?

The Demographic Transition Model graphs Birth rate, Death rate and Natural Increase. The word demographic simply means population, and transition relates to change. The rate of Natural Increase is much higher in developing countries of the world, and many countries in HICs are actually experiencing population decline.

What is the importance of demographic transition?

The demographic transition has enabled economies to convert a larger portion of the gains from factor accumulation and technological progress into growth of income per capita. It enhanced labor productivity and the growth process via three channels.

What happens during the transitional stage of the demographic transition?

Following the pre-industrial stage is the transitional stage. During this stage, the human population begins to increase due to high birth rates and declining death rates. As a result of the declining death rates and high birth rates, the human population will increase at a rapid pace.

What are the relevant changes brought about by demographic transition?

Demographic transition posits that with improvements in health, mortality rates start to drop faster than fertility rates. This results in a short-lived increase in family size. Due to the lag between mortality and fertility, population will increase.

How does demographic transition affect economic development?

Third, demographic changes can influence growth (and inflation) through the aggregate demand channel. The growth of a young population in the second stage and economically active population in the third stage of demographic transition leads to an increase in aggregate demand.

How does the demographic transition model relate economic development with changes in population?

The Demographic Transition Model (DTM) is based on historical population trends of two demographic characteristics – birth rate and death rate – to suggest that a country’s total population growth rate cycles through stages as that country develops economically.

How does the demographic transition affect the economic status of the Philippines?

The growing aging population during the third phase of the demographic transition can create a slowdown in the country’s economic growth as the number of consumers (the older population) grows faster compared to productive workers.

What is demographic transition explain the stages of demographic transition theory with examples?

Stage 1- high and fluctuating birth and death arte and population growth remains slow Stage 2- high birth rate and declining death rate and rapid population growth rate Stage 3- Declining birth rate and low death rate and declining rate of population growth Stage 4- low birth and death rate and slow population growth …

What is demographic transition theory the three stages of demographic transition with the help of suitable diagram?

These stages of demographic transition can be explained with the help of diagram 3 given below: Stage I is characterised by high birth rate, death rate and low rate of population growth. Stage II is characterised by high and stationary birth rate, rapidly declining death rate and very rapid increase in population.

What are the effects of a demographic transition?

Education, especially of women. Decreasing infant and child mortality, reducing pressure for more children to ensure survivors. Economic development, improved standards of living, rising expectations and family income levels. Urbanization – family needs and resources change compared to rural society.

Why are low income countries at Stage 2 of demographic transition?

Low-income countries (LICs) are typically at stage 2 of the demographic transition model. Death rates are falling due to global approaches to tackling malnutrition and disease. Birth rates remain high due to high infant mortality rates,…

Why are low income countries at Stage 1 of the DTM?

This is largely due to poor health care provision, a lack of contraception and the need for large families as infant mortality rates are very high. Only a few remote communities are at stage 1 of the DTM. Low-income countries (LICs) are typically at stage 2 of the demographic transition model.

How does population change as a country develops?

As HICs have developed their birth and death rates have decreased over time. This data has been used to develop a model showing how population changes as a country develops. This is known as the demographic transition model (DTM). This model is shown below: In stage 1 (high stationary) birth rates and death rates are very high.