The Contribution of Population Health and Demographic Change to Economic Growth in China and India.
David E Bloom, David Canning, Linlin Hu, Yuanli Liu, Ajay Mahal, Winnie Yip
J Comp Econ | Published : 2010
We find that a cross-country model of economic growth successfully tracks the growth takeoffs in China and India. The major drivers of the predicted takeoffs are improved health, increased openness to trade, and a rising labor force-to-population ratio due to fertility decline. We also explore the effect of the reallocation of labor from low-productivity agriculture to the higher-productivity industry and service sectors. Including the money value of longevity improvements in a measure of full income reduces the gap between the magnitude of China's takeoff relative to India's due to the relative stagnation in life expectancy in China since 1980.
Awarded by NIA NIH HHS