Hostname: page-component-8448b6f56d-cfpbc Total loading time: 0 Render date: 2024-04-23T05:56:09.466Z Has data issue: false hasContentIssue false

AFRICA'S PROSPECTS FOR ENJOYING A DEMOGRAPHIC DIVIDEND

Published online by Cambridge University Press:  13 February 2017

David E. Bloom*
Affiliation:
Harvard T.H. Chan School of Public Health
Michael Kuhn
Affiliation:
Vienna Institute of Demography
Klaus Prettner
Affiliation:
University of Hohenheim
*
Address correspondence to: David E. Bloom, Department of Global Health and Population, Harvard T.H. Chan School of Public Health, 665 Huntington Avenue Building I, 12th Floor, Suite 1202, Boston, Massachusetts 02115, USA; e-mail: dbloom@hsph.harvard.edu
Get access

Abstract:

We assess Africa's prospects for enjoying a demographic dividend. While fertility rates and dependency ratios in Africa remain high, they have started to decline. According to UN projections, they will fall further in the coming decades such that by the mid-21st century, the ratio of the working age to dependent population will be greater than in Asia, Europe, and Northern America. This projection suggests Africa has considerable potential to enjoy a demographic dividend. Whether and when it actually materializes, and also its magnitude, hinges on policies and institutions in key realms that include macroeconomic management, human capital, trade, governance, and labor and capital markets. Given strong complementarities among these areas, coordinated policies will likely be most effective in generating the momentum needed to pull Africa's economies out of a development trap.

Type
Essays
Copyright
Copyright © Université catholique de Louvain 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Agénor, Pierre-Richard (2010) A theory of infrastructure-led development. Journal of Economic Dynamics and Control 34 (5), 932950.Google Scholar
Agénor, Pierre-Richard, Bayraktar, Nihal and El Aynaoui, Karim (2008) Roads out of poverty? Assessing the link between aid, public investment, growth, and poverty. Journal of Development Economics 86 (2), 277295.CrossRefGoogle Scholar
Ahituv, Avner (2001) Be fruitful or multiply: On the interplay between fertility and economic development. Journal of Population Economics 14 (1), 5171.Google Scholar
Albanesi, Stefania and Olivetti, Claudia (2016) Gender roles and medical progress. Journal of Political Economy 124 (3), 650695.Google Scholar
Ashraf, Quamrul H., Weil, David N. and Wilde, Joshua (2013) The effect of fertility reduction on economic growth. Population and Development Review 39 (1), 97130.Google Scholar
Asiedu, Elizabeth (2002) On the determinants of direct foreign investment to developing countries: Is Africa different? World Development 30 (1), 107119.Google Scholar
Azomahou, Théophile T., Boucekkine, Raouf and Diene, Bity (2016) HIV/Aids and development: A reappraisal of the productivity and factor accumulation effects. American Economic Review, Papers & Proceedings 106 (5), 472477.Google Scholar
Bah, El-hadj, and Fang, Lei (2015) Impact of the business environment on output and productivity in Africa. Journal of Development Economics 114, 159171.Google Scholar
Barro, Robert J. (1991) Economic growth in a cross section of countries. Quarterly Journal of Economics, 106 (2), 407444.Google Scholar
Barro, R. J. (1997) Determinants of Economic Growth: A Cross-Country Empirical Study. Cambridge, MA: MIT Press.Google Scholar
Baudin, T., de la Croix, D. and Gobbi, P. E. (2015) Endogenous Childlessness and Stages of Development. IRES Discussion Paper 2015-03, Catholic University of Louvain.Google Scholar
Becker, Gary S. and Lewis, H. Gregg (1973) On the interaction between the quantity and quality of children. Journal of Political Economy 81 (2), 279288.CrossRefGoogle Scholar
Bhalotra, Sonia and Rawlings, Samantha B. (2011) Intergenerational persistence in health in developing countries: The penalty of gender inequality? Journal of Public Economics 95 (3), 286299.Google Scholar
Bhattacharya, J. and Chakraborty, S. (2014) Contraception and the fertility transition. MPRA Paper 53129, University Library of Munich, Germany.Google Scholar
Bleakley, Hoyt (2007) Disease and development: Evidence from hookworm eradication in the American south. Quarterly Journal of Economics 122 (1), 73117.Google Scholar
Bleakley, Hoyt (2010) Health, human capital, and development. Annual Review of Economics 2, 280310.CrossRefGoogle ScholarPubMed
Bleakley, Hoyt and Lange, Fabian (2009) Chronic disease burden and the interaction of education, fertility, and growth. Review of Economics and Statistics 91 (1), 5265.Google Scholar
Block, Steven A. (2002) Political business cycles, democratization, and economic reform: The case of Africa. Journal of Development Economics 67 (1), 205228.Google Scholar
Bloom, David E. and Canning, David (2008) Global demographic change: Dimensions and economic significance. Population and Development Review (supplement) 34, 1751.Google Scholar
Bloom, David E., Canning, David, Fink, Günther, and Finlay, Jocelyn (2009) Fertility, female labor force participation, and the demographic dividend. Journal of Economic Growth 14 (2), 79101.CrossRefGoogle Scholar
Bloom, D. E., Canning, D. and Malaney, P. N. (2000) Population dynamics and economic growth in Asia. Population and Development Review, (supplement) 26, 257290.Google Scholar
Bloom, D. E., Canning, D. and Sevilla, J. P. (2003) The demographic dividend. Population matters. A RAND Program of Policy-Relevant Research Communication, Santa Monica, California.Google Scholar
Bloom, David E. and Freeman, Richard B. (1988) Economic development and the timing and components of population growth. Journal of Policy Modeling, 10 (1) 5782.Google Scholar
Bloom, David E. and Finlay, Jocelyn (2009) Demographic change and economic growth in Asia. Asian Economic Policy Review 4 (1), 4564.Google Scholar
Bloom, D. E., Kuhn, M. and Prettner, K. (2015) The Contribution of Female Health to Economic Development. NBER Working Paper No. 21411, National Bureau of Economic Research, Cambridge, Massachusetts.Google Scholar
Bloom, David E., Humair, Salal, Rosenberg, Larry, Sevilla, J. P., and Trussell, James (2014) Capturing the demographic dividend: Source, magnitude and realization. In Soucat, A. and Ncube, M. (eds.). One Billion People, One Billion Opportunities: Building Human Capital in Africa, pp. 2341. Addis Ababa: African Development Bank.Google Scholar
Bloom, D. E., Mahal, A., Sevilla, J. P., and River Path Associates. (2001) AIDS and Economics. Paper prepared for Working Group 1 of the WHO Commission on Macroeconomics and Health, Geneva, Switzerland.Google Scholar
Bloom, David E. and Sachs, Jeffrey D. (1998) Geography, demography, and economic growth in Africa. Brookings Papers on Economic Activity 29 (2), 207295.Google Scholar
Bloom, D. E. and Williamson, J. G. (1997) Demographic change and human resource development. In Sachs, Jeffrey and Bloom, David E. (eds.), Emerging Asia: Changes and Challenges, pp. 141197. Manila: Asian Development Bank.Google Scholar
Bloom, David E. and Williamson, Jeffrey G. (1998) Demographic transitions and economic miracles in emerging Asia. World Bank Economic Review 12 (3), 419456.Google Scholar
Boldrin, Michele, De Nardi, Mariacristina and Jones, Larry E. (2015) Fertility and social security. Journal of Demographic Economics 81, 261299.Google Scholar
Brander, James A. and Dowrick, Steve (1994) The role of fertility and population in economic growth. Journal of Population Economics 7 (1), 125.Google Scholar
Canning, D., Raja, S. and Yazbeck, A. S. (Eds.) (2015) Africa's Demographic Transition: Dividend or Disaster? Washington, DC: World Bank Group.Google Scholar
Coale, A. J. and Hoover, E. M. (1958) Population Growth and Economic Development in Low-Income Countries. Princeton, NJ: Princeton University Press.Google Scholar
Cohen, Jessica, Dupas, Pascaline and Schaner, Simone (2015) Price subsidies, diagnostic tests, and targeting of malaria treatment: Evidence from a randomized controlled trial. American Economic Review 105 (2), 609645.Google Scholar
Collier, Paul, Conway, Gordon and Venables, Tony (2008) Climate change and Africa. Oxford Review of Economic Policy 24 (2), 337353.Google Scholar
Collier, Paul and Gunning, Jan W. (1999) Explaining African economic performance. Journal of Economic Literature 37 (1), 64111.Google Scholar
Crespo Cuaresma, Jesus, Lutz, Wolfgang and Sanderson, Warren (2014) Is the demographic dividend an education dividend? Demography 51 (1), 299315.Google Scholar
Cuddington, John T. and Hancock, John D. (1994) Assessing the impact of AIDS on the growth of the Malawian economy. Journal of Development Economics 43 (2), 107124.Google Scholar
de la Croix, David and Vander Donckt, Marie (2010) Would empowering women initiate the demographic transition in least developed countries? Journal of Human Capital 4 (2), 85129.Google Scholar
Dell, Melissa, Jones, Benjamin F. and Olken, Benjamin A. (2012) Temperature shocks and economic growth: evidence from the last half century. American Economic Journal: Macro, 4 (3), 6695.Google Scholar
Dell, Melissa, Jones, Benjamin F. and Olken, Benjamin A. (2014) What do we learn from the weather? The new climate-economy literature. Journal of Economic Literature, 52 (3), 740798.Google Scholar
Doepke, Matthias (2015) Gary becker on the quantity and quality of children. Journal of Demographic Economics 81 (1), 5966.Google Scholar
Doepke, M. and Tertilt, M. (2014) Does female empowerment promote economic development? NBER Working Paper 1988, National Bureau of Economic Research, Cambridge, Massachusetts.Google Scholar
Duflo, Esther, Dupas, Pascaline and Kremer, Michael (2015) Education, HIV, and early fertility: Experimental evidence from Kenya. American Economic Review 105 (9), 27592797.Google Scholar
Dupas, Pascaline (2011) Health behaviors in developing countries. Annual Review of Economics, 3, 425449.Google Scholar
Field, Erica, Robles, Omar and Torero, Maximo (2009) Iodine deficiency and schooling attainment in Tanzania. American Economic Journal: Applied Economics, 1 (4), 140169.Google Scholar
Fortson, Jane G. (2009) HIV/AIDS and fertility. American Economic Journal: Applied Economics 1 (3), 170194.Google Scholar
Fortson, Jane G. (2011) Mortality risk and human capital investment: The impact of HIV/AIDS in sub-Saharan Africa. Review of Economics and Statistics 93 (1), 115.CrossRefGoogle Scholar
Frazer, Garth and van Biesebroeck, Johannes (2010) Trade growth under the African growth and opportunity act. Review of Economics and Statistics 92 (1), 128144.Google Scholar
Galor, O. (2005) From stagnation to growth: Unified growth theory. In Aghion, Philipe and Durlauf, Steven N. (eds.), Handbook of Economic Growth, pp. 171293. Noth Holland: Elsevier.Google Scholar
Galor, O. (2011) Unified Growth Theory. Princeton, New Jersey: Princeton University Press.Google Scholar
Galor, Oded and Weil, Dacid (1996) The gender gap, fertility, and growth. American Economic Review 86 (3), 374387.Google Scholar
Galor, Oded and Weil, David (2000) Population, technology, and growth: From Malthusian stagnation to the demographic transition and beyond. The American Economic Review 90 (4), 806828.Google Scholar
Gyimah-Brempong, Kwabena (2002) Corruption, economic growth, and income inequality in Africa. Economics of Governance, 3 (3), 183209.Google Scholar
Hatton, Timothy J. and Williamson, Jeffrey G. (2003) Demographic and economic pressure on emigration out of Africa. The Scandinavian Journal of Economics 105 (3), 465486.CrossRefGoogle Scholar
Hatton, Timothy J. and Williamson, Jeffrey G. (2011) Are third world emigration forces abating? World Development 39 (1), 2032.Google Scholar
Herzer, Dierk, Strulik, Holger and Vollmer, Sebastian (2012) The long-run determinants of fertility: One century of demographic change 1900–1999. Journal of Economic Growth 17 (4), 357385.Google Scholar
Jayachandran, Seema and Lleras-Muney, Adriana (2009) Life expectancy and human capital investments: Evidence from maternal mortality declines. Quarterly Journal of Economics 124 (1), 349397.Google Scholar
Juhn, Chinhui, Kalemli-Ozcan, Sebnem and Turan, Belgi (2013) HIV and fertility in Africa: First evidence from population-based surveys. Journal of Population Economics 26 (3), 835853.Google Scholar
Kalemli-Ozcan, Sebnem (2003) A stochastic model of mortality, fertility, and human capital investment. Journal of Development Economics 70 (1), 103118.Google Scholar
Kalemli-Ozcan, Sebnem (2012) AIDS, “reversal” of the demographic transition and economic development: Evidence from Africa. Journal of Population Economics 25 (3), 871897.Google Scholar
Kelley, Allen C. and Schmidt, Robert M. (1995) Aggregate population and economic growth correlations: The role of the components of demographic change. Demography 32 (4), 543555.Google Scholar
Kelley, Allen C. and Schmidt, Robert M. (2005) Evolution of recent economic-demographic modeling: A synthesis. Journal of Population Economics 18 (2), 275300.CrossRefGoogle Scholar
Kohler, Hans-Peter, Behrman, Jere R. and Watkins, Susan C. (2001) The density of social networks and fertility decisions: Evidence from the South Nyanza District, Kenya. Demography 38 (1), 4358.Google Scholar
Lee, Ronald and Mason, Andrew (2010) Fertility, human capital, and economic growth over the demographic transition. European Journal of Population 26 (2), 159182.Google Scholar
Li, Hongbin and Zhang, Junsen (2007) Do high birth rates hamper economic growth? Review of Economics and Statistics 89 (1), 110117.Google Scholar
Lucas, Adrienne M. (2010) Malaria eradication and educational attainment: Evidence from Paraguay and Sri Lanka. American Economic Journal: Applied Economics 2 (2), 4671.Google Scholar
Marchiori, Luca, Maystadt, Jean-François and Schumacher, Ingmar (2012) The impact of weather anomalies on migration in sub-Saharan Africa. Journal of Environmental Economics and Management 63 (3), 355374.Google Scholar
Masanjala, Winford H. and Papageorgiou, Chris (2008) Rough and lonely road to prosperity: A reexamination of the sources of growth in Africa using Bayesian model averaging. Journal of Applied Econometrics 23 (5), 671682.Google Scholar
Mason, Andrew ed. (2001) Population Change and Economic Development in East Asia: Challenges Met, Opportunities Seized. Palo Alto, CA: Stanford University Press.Google Scholar
Mason, Andrew, Lee, Ronald and Jiang, Jennifer Xue (2016) Demographic dividends, human capital, and saving. The Journal of the Economics of Ageing 7, 106122.Google Scholar
Ndulu, Benno J. and O'Connell, Stephen A. (1999) Governance and growth in sub-Saharan Africa. Journal of Economic Perspectives 13 (3), 4166.Google Scholar
Oster, Emily (2012) HIV and sexual behavior change: Why not Africa? Journal of Health Economics 31 (1), 3549.CrossRefGoogle Scholar
Prettner, Klaus and Strulik, Holger (2016a) Gender equity and the escape from poverty. Oxford Economic Papers (forthcoming).Google Scholar
Prettner, Klaus and Strulik, Holger (2016b) It's a sin-contraceptive use, religious beliefs, and long-run economic development. Review of Development Economics (forthcoming).Google Scholar
Rees, Ray and Riezman, Ray (2012) Globalization, gender, and growth. Review of Income and Wealth 58 (1), 107117.Google Scholar
Santos-Paulino, Amelia U. and Thirlwall, Anthony Philip (2004) The impact of trade liberalization on exports, imports, and the balance of payments of developing countries. Economic Journal 114 (493), F50–F72.Google Scholar
Schober, Thomas and Winter-Ebmer, Rudolf (2011) Gender wage inequality and economic growth: Is there really a puzzle? - A comment. World Development 39 (8), 14761484.Google Scholar
Schultz, T. Paul (1990) Testing the neoclassical model of family labour supply and fertility. Journal of Human Resources 25 (4), 599634.Google Scholar
Soares, Rodrigo R. and Falcao, Bruno L. S. (2008) The demographic transition and the sexual division of labor. Journal of Political Economy 116 (6), 10581104.Google Scholar
Solow, Robert M. (1956) A contribution to the theory of economic growth. The Quarterly Journal of Economics 70 (1), 6594.Google Scholar
Strulik, Holger (2016) Contraception and development: A unified growth theory. International Economic Review (forthcoming).Google Scholar
Thomas, Duncan (1990) Intra-household resource allocation: an inferential approach. Journal of Human Resources 25 (4), 635664.Google Scholar
UNFPA (2014) State of the World Population 2014. New York: United Nations Population Fund.Google Scholar
United Nations (2010) World Population Prospects: The 2010 Revision. Department of Economic and Social Affairs, Population Division, New York.Google Scholar
United Nations (2015) World Population Prospects: The 2015 Revision. Department of Economic and Social Affairs, Population Division, New York.Google Scholar
van Dalen, Hendrik P., Groenewold, George and Schoorl, Jeannette J. (2005) Out of Africa: What drives the pressure to emigrate? Journal of Population Economics 18 (4), 741778.Google Scholar
Young, Alwyn (2005) The gift of the dying: The tragedy of AIDS and the welfare of future African generations. Quarterly Journal of Economics 120 (2), 423466.Google Scholar
Young, Alwyn (2007) In sorrow to bring forth children: Fertility amidst the plague of HIV. Journal of Economic Growth 12 (4), 283327.Google Scholar