Impact of Demographic Dividend on Economic Growth: Bangladesh Perspective

Abstract

In Bangladesh the window of opportunity has emerged since the 1979s will not last long and will not be repeated in the near future. It reaches its peak in the 2020s and will remain open until the 2035s. The demographic dividend is not given in automatic. This demographic dividend needs to be managed efficiently to capitalized better and sustained economic growth. This study attempts to estimate the contribution of the first demographic dividend on the growth rate of real GDP per capita in Bangladesh from 1991 to 2019 and provides empirical evidence concerning the net growth benefits derived from an increased share of the working-age population in Bangladesh. The analysis adopts decomposition analysis and econometric methods using time-series data. The results of regression exhibit that the relationship between demographic dividend and economic growth is positive (4.47%) which shows that demographic dividend has positive impacts on economic growth i.e., growth of the real GDP per capita.