Demographic Transition and Human Capital in Developing Countries: An Empirical Analysis

Abstract

This paper provides empirical evidence that supports the bi-directional relationship between demographic transition and human capital in accordance with demographic transition model (DTM). The study uses the panel data analysis, which consists of 31 developing countries in total from 2010 to 2020.The results expose that fertility rate and mortality rate have negative effect on demographic transition while economic growth and labor force has positive effect on human capital index. The results suggest that appropriate measures ought to be taken by the government to improve the education policies and health insurance programs.