| The Problem
The rate of natural increase, (RNI) depends on the Crude Birth Rate,
(CBR) and the Crude Death Rate, (CDR). At the beginning of the demographic
transition (A) both rates are high and the RNI is low. The RNI will also
be low at the end of the transition (B) when the CBR and CDR are both low.
Thus, the same rate of population growth can correspond to two very different
demographic situations (A and B). |
 |
| The Effect of an Increase in Demographic
Rates on the Growth Rate of GDP Per Capita
The table to the right, based on Allen Kelley's findings, shows that
since the 1970s, both decreases in birth rates and decreases in death rates
tend to increase the rate of growth of per capita income. Thus, nations
can improve their levels of living by moving rapidly through the demographic
transition, as did most countries of East Asia.. |
The Effect of an Increase in Demographic
Rates on the Growth Rate of GDP Per Capita
|
| Decade |
CBR |
CDR |
| 1960s |
positive |
negative |
| 1970s |
negative |
negative |
| 1980s |
negative |
negative |
|