IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332459.html
   My bibliography  Save this paper

How significant is Africa’s Demographic Dividend for Its Future Growth and Poverty Reduction?

Author

Listed:
  • Ahmed, S. Amer
  • Cruz, Marcio
  • Go, Delfin S.
  • Maliszewska, Maryla
  • Osorio-Rodarte, Israel

Abstract

Africa will be undergoing substantial demographic changes in the coming decades with the rising working age share of its population. African countries will have the opportunity to convert these changes into substantial demographic dividends for growth and poverty reduction. The dividend for growth could account for about 0.37 to.42 percentage points of average annual real GDP per capita growth between 2011 and 2030, equal to 11 to 15 percent of GDP volume growth, while accounting for 40 to 60 million fewer poor in 2030. Countries with the most rapid demographic changes have the greatest potential gains. However, these dividends however can only be achieved if the working age population growth can be accompanied by improvements in employment and labor force participation rates, and if the falling dependency ratios can accelerate growth of the capital stock and deepen capital.

Suggested Citation

  • Ahmed, S. Amer & Cruz, Marcio & Go, Delfin S. & Maliszewska, Maryla & Osorio-Rodarte, Israel, 2014. "How significant is Africa’s Demographic Dividend for Its Future Growth and Poverty Reduction?," Conference papers 332459, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:332459
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332459/files/7101.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Markus Brueckner & Hannes Schwandt, 2015. "Income and Population Growth," Economic Journal, Royal Economic Society, vol. 125(589), pages 1653-1676, December.
    2. Bloom, David E & Williamson, Jeffrey G, 1998. "Demographic Transitions and Economic Miracles in Emerging Asia," The World Bank Economic Review, World Bank, vol. 12(3), pages 419-455, September.
    3. David E. Bloom & Jeffrey D. Sachs, 1998. "Geography, Demography, and Economic Growth in Africa," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 207-296.
    4. Martin Ravallion, 2013. "How Long Will It Take to Lift One Billion People Out of Poverty?," The World Bank Research Observer, World Bank, vol. 28(2), pages 139-158, August.
    5. World Bank & International Monetary Fund, 2013. "Global Monitoring Report 2013 : Rural-Urban Dynamics and the Millennium Development Goals," World Bank Publications - Books, The World Bank Group, number 13330, December.
    6. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    7. Syrquin, M. & Chenery, H.B., 1989. "Patterns Of Development, 1950 To 1983," World Bank - Discussion Papers 41, World Bank.
    8. Syud Amer Ahmed & Noah S. Diffenbaugh & Thomas W. Hertel & William J. Martin, 2012. "Agriculture and Trade Opportunities for Tanzania: Past Volatility and Future Climate Change," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 429-447, August.
    9. Ahmed, Syud Amer & Diffenbaugh, Noah S. & Hertel, Thomas W. & Lobell, David B. & Ramankutty, Navin & Rios, Ana R. & Rowhani, Pedram, 2009. "Climate Volatility and Poverty Vulnerability in Tanzania," Conference papers 331847, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Terrie Walmsley & Angel Aguiar & Syud Amer Ahmed, 2017. "Labour Migration and Economic Growth in East and South-East Asia," The World Economy, Wiley Blackwell, vol. 40(1), pages 116-139, January.
    11. Norman Loayza & Klaus Schmidt-Hebbel & Luis Servén, 2000. "What Drives Private Saving Across the World?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 165-181, May.
    12. Loayza, Norman & Schmidt-Hebbel, Klaus & Serven, Luis, 2000. "What drives private saving around the world?," Policy Research Working Paper Series 2309, The World Bank.
    13. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    14. Timothy J Hatton & Jeffrey G Williamson, 2002. "Out of Africa? Using the Past to Project African Emigration Pressure in the Future," Review of International Economics, Wiley Blackwell, vol. 10(3), pages 556-573, August.
    15. Samir K.C. & Bilal Barakat & Anne Goujon & Vegard Skirbekk & Warren C. Sanderson & Wolfgang Lutz, 2010. "Projection of populations by level of educational attainment, age, and sex for 120 countries for 2005-2050," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(15), pages 383-472.
    16. Mr. Paulo Drummond & Mr. Vimal V Thakoor & Shu Yu, 2014. "Africa Rising: Harnessing the Demographic Dividend," IMF Working Papers 2014/143, International Monetary Fund.
    17. Hatton, Timothy J & Williamson, Jeffrey G, 2002. "Out of Africa? Using the Past to Project African Emigration Pressure in the Future," Review of International Economics, Wiley Blackwell, vol. 10(3), pages 556-573, August.
    18. Punam Chuhan-Pole & Manka Angwafo, 2011. "Yes Africa Can : Success Stories from a Dynamic Continent," World Bank Publications - Books, The World Bank Group, number 2335, December.
    19. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    20. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedro M. G. Martins, 2018. "Structural change in Ethiopia," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 183-200, March.
    2. Ahmed, S. Amer & Vargas Da Cruz,Marcio Jose, 2016. "On the impact of demographic change on growth, savings, and poverty," Policy Research Working Paper Series 7805, The World Bank.
    3. Ahmed,Syud Amer & Baris,Enis & Go,Delfin Sia & Lofgren,Hans & Osorio-Rodarte,Israel & Thierfelder,Karen E. & Ahmed,Syud Amer & Baris,Enis & Go,Delfin Sia & Lofgren,Hans & Osorio-Rodarte,Israel & Thier, 2017. "Assessing the global economic and poverty effects of antimicrobial resistance," Policy Research Working Paper Series 8133, The World Bank.
    4. Rozenberg,Julie & Hallegatte,Stephane, 2015. "The impacts of climate change on poverty in 2030 and the potential from rapid, inclusive, and climate-informed development," Policy Research Working Paper Series 7483, The World Bank.
    5. Ferrantino,Michael Joseph & Maliszewska,Maryla & Taran,Svitlana, 2020. "Actual and Potential Trade Agreements in the Asia-Pacific : Estimated Effects," Policy Research Working Paper Series 9496, The World Bank.
    6. Osorio Rodarte, Israel, 2016. "Modeling Distributional Effects of Macroeconomic Shocks: Increasing female participation and human capital in Turkey," Conference papers 332777, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Ahmed, S. Amer & Vargas Da Cruz,Marcio Jose, 2016. "Making the most of demographic change in Southern Africa," Policy Research Working Paper Series 7798, The World Bank.
    8. Ahmed, S. Amer & Go,Delfin Sia & Willenbockel,Dirk Andreas, 2016. "Global migration revisited : short-term pains, long-term gains, and the potential of south-south migration," Policy Research Working Paper Series 7628, The World Bank.
    9. Balistreri, Edward J. & Maliszewska, Maryla & Osorio-Rodarte, Israel & Tarr, David G. & Yonezawa, Hidemichi, 2016. "Poverty and Shared Prosperity Implications of Deep Integration in Eastern and Southern Africa," Conference papers 332681, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Livia Elisa Ortensi & Alessio Menonna, 2017. "Migrating with Special Needs? Projections of Flows of Migrant Women with Female Genital Mutilation/Cutting Toward Europe 2016–2030," European Journal of Population, Springer;European Association for Population Studies, vol. 33(4), pages 559-583, October.
    11. Boako, Gideon & Alagidede, Paul, 2017. "Co-movement of Africa’s equity markets: Regional and global analysis in the frequency–time domains," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 359-380.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Amer Ahmed & Marcio Cruz & Delfin S. Go & Maryla Maliszewska & Israel Osorio-Rodarte, 2016. "How Significant Is Sub-Saharan Africa's Demographic Dividend for Its Future Growth and Poverty Reduction?," Review of Development Economics, Wiley Blackwell, vol. 20(4), pages 762-793, November.
    2. Ahmed, S. Amer & Vargas Da Cruz,Marcio Jose, 2016. "Making the most of demographic change in Southern Africa," Policy Research Working Paper Series 7798, The World Bank.
    3. Ahmed, S. Amer & Vargas Da Cruz,Marcio Jose & Quillin,Bryce Ramsey & Schellekens,Philip, 2016. "Demographic change and development : a global typology," Policy Research Working Paper Series 7893, The World Bank.
    4. Amer Ahmed & Maurizio Bussolo & Marcio Cruz & Delfin S. Go & Israel Osorio-Rodarte, 2020. "Global Inequality in a more educated world," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(4), pages 585-616, December.
    5. Cruz, Marcio & Ahmed, S. Amer, 2018. "On the impact of demographic change on economic growth and poverty," World Development, Elsevier, vol. 105(C), pages 95-106.
    6. Ziesemer, Thomas H.W., 2010. "The impact of the credit crisis on poor developing countries: Growth, worker remittances, accumulation and migration," Economic Modelling, Elsevier, vol. 27(5), pages 1230-1245, September.
    7. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    8. Devarajan, Shantayanan & Go, Delfin S. & Maliszewska, Maryla & Osorio-Rodarte, Israel & Timmer, Hans, 2015. "Stress-testing Africa's recent growth and poverty performance," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 521-547.
    9. Filoso, Valerio & Papagni, Erasmo, 2015. "Fertility choice and financial development," European Journal of Political Economy, Elsevier, vol. 37(C), pages 160-177.
    10. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
    11. Trung V. Vu, 2023. "Life expectancy and human capital: New empirical evidence," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 395-412, February.
    12. Maliszewska,Maryla & Osorio-Rodarte,Israel & Nichanametla Ramasubbaiah,Rakesh Gupta, 2020. "Ex-Ante Evaluation of Sub-National Labor Market Impacts of Trade Reforms," Policy Research Working Paper Series 9478, The World Bank.
    13. McArthur, John W. & McCord, Gordon C., 2017. "Fertilizing growth: Agricultural inputs and their effects in economic development," Journal of Development Economics, Elsevier, vol. 127(C), pages 133-152.
    14. Bloom, David E. & Humair, Salal & Rosenberg, Larry & Sevilla, J.P. & Trussell, James, 2013. "A Demographic Dividend for Sub-Saharan Africa: Source, Magnitude, and Realization," IZA Discussion Papers 7855, Institute of Labor Economics (IZA).
    15. Katsushi S. Imai & Raghav Gaiha, 2014. "Dynamic and Long-term Linkages among Growth, Inequality and Poverty in Developing Countries," Economics Discussion Paper Series 1410, Economics, The University of Manchester.
    16. Harkat, Tahar & Driouchi, Ahmed, 2017. "Demographic Dividend & Economic Development in Arab Countries," MPRA Paper 82880, University Library of Munich, Germany.
    17. Jain, Neha & Goli, Srinivas, 2021. "Demographic Change and Private Savings in India," SocArXiv n73ab, Center for Open Science.
    18. Hendrik P. van Dalen, 2007. "Global Aging and Economic Convergence: A Real Option or Still a Case of Science Fiction?," Tinbergen Institute Discussion Papers 07-051/1, Tinbergen Institute.
    19. Jain, Neha & Goli, Srinivas, 2021. "Demographic Change and Economic Growth in India," MPRA Paper 109560, University Library of Munich, Germany.
    20. repec:dgr:unumer:2008063 is not listed on IDEAS
    21. Cavallo, Eduardo & Sanchez, Gabriel & Valenzuela, Patricio, 2016. "Gone with the Wind: Demographic Transition and Domestic Saving," Working Papers 16-04, University of Pennsylvania, Wharton School, Weiss Center.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332459. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.