Demographic transition; Economic growth; Population growth; Life expectancy; Age structure; Bi-directional causality; Southeast Asia; Panel data; SEM
This study has demonstrated new evidence sustaining the idea that variation in demographic factors is an important determinant of growth in per capita income. Using an panel dataset from 1990 to 2013 at the country-level in the Southeast Asia, this study is conducted to analyze the following two key areas. First, the prevalent of a number of the demographic factors impact on the economic growth. Second, the bi-directional causality is revealed among: (i) the population growth and the economic growth; and (ii) the life expectancy and the economic growth. Furthermore, the two new econometric techniques, Driscoll and Kraay estimation, and structural equation model are applied. Finding from this study manifests the substantial effects on the economic growth from: the positive effect of population growth, the significant boost of the life expectancy, and the pressure of dependent population. In addition, it is a worth noting in its kind of literature due to the confirmation of the significant inverse effects of the economic growth on the two demographic factors.