Cumulative Causality, Economic Growth, and the Demographic Transition

Abstract

Abstract This chapter explores the impact of demographic change on economic growth. It is argued that the interaction of economic growth with population dynamics can create a poverty trap. There may be two clubs: one with low income and high population growth rates, and the other with high income and low population growth rates. Transition between these clubs may be rare, but when it occurs, it does so very quickly, due to the positive feedbacks between growth and demographic change.

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