Demographic Transition Theory and Economic Development: Stages and Relevance

Demographic transition is the long-term shift from high birth and death rates to low birth and death rates, with changing population growth.

In Stage 2, the death rate falls rapidly while the birth rate remains high, leading to rapid population growth.

Population boom is a period of rapid population increase, typically when death rates fall but birth rates remain high.

Demographic dividend is the potential economic benefit that arises when the working-age population becomes relatively larger and dependency ratio falls.

One business use is forecasting future market demand and workforce availability based on changes in birth/death rates and age structure.

One limitation is that countries and regions do not always follow the same sequence and timing of stages; migration and policies can change patterns.

Any three stages of demographic transition are:

(Any three stages can be written.)