Abstract

Many scholars have previously studied the birth rate and its development, but there are still gaps in the research on which factors play a dominant role in the birth rate. Therefore, this paper will provide a clear study of this issue, using China as an example to help major countries solve the problem of low birth rates and economic development. The population issues caused by low birth rate were researched and the main factors for birth rate were found from research. The decisive factors that determine the birth rate in China were analyzed. The link between birth rate and economic development is examined. This study figures out that the two main factors that influence the birth rate are the divorce rate and the female employment rate. There is a relatively strong correlation between the birth rate and economic development. The formula and the principle of Vector Autoregressive (VAR), Bayesian Information Criterion (BIC) and Times Series Graphical lasso (TSGlasso), were researched and used.

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