4. The Demographic Dividend and Sustainability of China’s Economic Growth

Demographic transition is a dynamic process of changes in fertility and mortality that causes corresponding changes in population quantity and structure. According to the Malthusian theory, technological progress is slow and exogenous, and the population growth that occurs will deplete agricultural growth and keep the whole society trapped in a state of survival. Chinas growth has been criticized for its high input of factors of production. The demographic transition in China has entered the stage with the most productive population age structure, which provides an opportunity for China to develop labor-intensive industries and sectors to harvest the demographic dividend. The reallocation of public investment in education is critical to improve education levels throughout the country. There is a need for the development of a more efficient labor market that encourages individuals and families to accumulate human capital through investments in education.