The Economic Impactions of Demographic Dividend and Policy Analysis: Comparison between China and India

Jiaxing Liu ()
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Jiaxing Liu: International College Beijing, China Agricultural University

A chapter in Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025), 2026, pp 779-788 from Springer

Abstract: Abstract The characteristics of the demographic dividend include the proportion of the working population aged 15-64 has increased and a decrease in the dependency ratio. This is very beneficial for the economic of developing countries. Using a comparative analysis approach, this article examines the economic impactions of demographic dividend of the two countries with the largest populations in the world, China and India. By applying the theory of population transition, this research explores how China and India can effectively utilize their demographic dividends through strong policy interventions and considers the common challenges they face due to regional differences and limited infrastructure. The analysis explains how the demographic dividend contributes to economic growth through mechanisms like increased labor supply, higher savings rates, and improved human capital. By comparing successful and unsuccessful cases worldwide, this study identifies key policy factors that influence the realization of the demographic dividend. The findings show that while China is fully leveraging the benefits of its demographic dividend, it now faces challenges related to an aging population. Conversely, India’s uneven development is restricting the duration of its demographic dividend. Policy recommendations include strengthening education and skills training, addressing regional disparities, and preparing for an aging society to sustain economic growth.

Keywords: Demographic Dividend; Economic Growth; Regional Imbalance (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-2-38476-585-0_88

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