Impact of Dependency Ratio on Economic Growth among Most Populated Asian Countries

Demographic transition through different channels significantly influences economic growth. Malthusian view postulated as dependency ratio adversely affects economic growth while Julian Simon's view is quite different, highlighted the long-run benefits of the population in the range of 5 to15 years on economic growth. This study can be a valuable addition in research to analyzing the association of dependency ratio and economic growth of the five most populated Asian countries (Bangladesh, China, Indonesia, India, and Pakistan). Empirical findings of the study indicated that a total dependency and younger dependency ratio has a positive and significant influence on economic growth in both short-run and long-run scenarios while the old dependency ratio shows a negative influence on economic growth in the long run while short-run results are unpredictable. There is a need for state-based proper policy measures in focusing the higher financing in human capital development specifically in education and health.