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Youth Dependency, Institutions, and Economic Growth

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Abstract

The present paper shows empirically that the youth dependency ratio (the population below working age divided by the population of working age) reduces economic growth even after controlling for institutions. The institutional variable, the paper controls for, is the measure for institutions that is recently preferred in prominent work by Acemoglu and co-authors. Institutions turn out to have a significant and positive effect on economic growth. The significance of the youth dependency ratio and of institutions appears to be robust to controlling for various variables, including malaria prevalence. Hence, the paper finds evidence that demography, as well as institutions, both matter for economic growth.

Suggested Citation

  • Tomas Kögel, 2007. "Youth Dependency, Institutions, and Economic Growth," Discussion Paper Series 2007_14, Department of Economics, Loughborough University.
  • Handle: RePEc:lbo:lbowps:2007_14
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    File URL: http://www.lboro.ac.uk/departments/ec/RePEc/lbo/lbowps/ERP07-14.pdf
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    Keywords

    Economic Growth; Fertility; Age structure effects.;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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