Demographic Dividend and Its Regional Variation: Evidence from Bangka Belitung Islands Province

Tomi Sah (), Devi Valeriani () and Aning Kesuma Putri ()
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Tomi Sah: Peking University, Institute of Population Research
Devi Valeriani: Bangka Belitung University, Faculty of Economics and Business
Aning Kesuma Putri: Bangka Belitung University, Faculty of Economics and Business

A chapter in Proceedings of the 2nd International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2025), 2025, pp 46-52 from Springer

Abstract: Abstract The demographic transition in developing regions presents a unique opportunity to accelerate economic growth through the demographic dividend. However, its realization varies across spatial and institutional contexts. This study examines regional disparities in realizing the demographic dividend in the Bangka Belitung Islands Province, Indonesia. A composite Demographic Dividend Index (DDI) was developed by integrating age structure, labor participation, education, and dependency ratios to assess regional demographic potential. Using panel data from 2013–2024 and Random Effects regression analysis, the results reveal that only districts with diversified economies and strong human-capital investment, particularly West Bangka and East Belitung, effectively convert demographic advantages into economic gains. Median age and human capital positively influence regional income, while an unabsorbed working-age population suppresses growth. The findings demonstrate that the demographic dividend is not an automatic outcome of population change but a function of institutional capacity, labor-market efficiency, and human-capital quality. The study contributes to demographic-economic transition theory and offers policy insight on aligning education, employment, and governance strategies to optimize demographic potential for sustainable regional growth.

Keywords: Demographic Dividend; Age Structure; Human Capital; Economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-974-2_8

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DOI: 10.2991/978-94-6463-974-2_8

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