An Empirical Study On Effect Of Demographic Dividend In Henan Province

Population never fails to connect with economic development and social progress. Due to the age structure of population is a significant aspect of related studies, different stages give various impact to the whole development of economic. Henan province has made tremendous achievements of economic development in the past a period, which dividend produced by the age structure of population has played a vital role. Nevertheless, demographic dividend is not inexhaustible and unsustainable, it will gradually disappear as the changes of population until the population deficit come into our society. Therefore, the research need face to the situation that population age structure which can bring the effect of demographic dividend. Correct understanding the current background will help us using the social economic foundation accumulated by demographic dividend to deal with the growing problems such as aging of population and population balance.This paper will follow the guidance of the demographic dividend theory, the demographic transition theory and economic growth theory; choose Henan province as the research object; mainly focus on the research of the whole process of demographic transition. In the first place, from the time series, we analyzed the formation and evolution process of demographic dividend in Henan province, points out that the demographic dividend session open in 1997, around 2035 to the end, is currently in the most profitable period. Secondly, this paper discusses the demographic dividend effect on economic growth mechanism, respectively from the level of labor supplement, consumption, savings, labor force allocation efficiency, and human capital accumulation these five aspects. In the next place, apply the empirical research method on the quantitative analysis of the impact of economic growth in labor supply and savings way, based on the population age structure changes. According to all the studies, results show that abundant labor input has gives higher contribution to the economic growth in the past a period of time. After introducing the Cobb-Douglas production function to the dependency ratio, the number of children’s has been reduce to a certain region. It luckily makes positive effort on economic growth. To the contrary, raising the elder’s dependency ratio is suppressed effectively. However, the influence of elderly dependency ratio is not obvious when it compares to the huge impact of children’s dependency ratio. In terms of savings, the higher level of savings can rapidly promote the growth of economy and the change of elder’s dependency ratio is more significant than the children ’s. For the last part, this paper will put forward countermeasures and suggestions to maximize the dividend effect and achieving sustainable economic social development, for instance optimizes the allocation of labor resources, strengthen the human capital investment, perfecting the social security system and the transformation of the mode of economic development, etc.