The Role of Fertility and Population in Economic Growth: Empirical ResultsFrom Aggregate Cross-National Data

Two recently improved sets of cross-country panel data are combined in order
to re-examine the effects of population growth and fertility on economic
growth. Using a 107 country panel data set covering 1960-85, we find that
high birth rates appear to reduce economic growth through investment effects
and possibly through "capital dilution", although classic resource dilution is not
evident in the data. Most significantly, however, birth rate declines have a
strong medium-term positive impact on per capita income growth through
labour supply or "dependency" effects.