Sample Solution

Demographic transition is, essentially, a model that describes the change in population over time. Demographic transition is a series of stages that a country goes through when transitioning from non-industrial to industrial. It is important to note that demographic transition involves the transition from high birth and death rates to lower birth and death rates. It can be witnessed that most developing countries are in the process of this transition while most developed countries have completed the transition and have low birth rates. The concept involves four stages.

The demographic transition has enabled economies to convert a larger portion of the gains from factor accumulation and technological progress into growth of income per capita. It enhanced labor productivity and the growth process via three channels. First, the decline in population growth reduced the dilution of the growing stocks of capital and infrastructure, increasing the amount of resources per capita. Second, the reduction in fertility rates permitted the reallocation of resources from the quantity of children toward their quality, enhancing human capital formation and labor productivity. Third, the decline in fertility rates affected the age distribution of the population, temporarily increasing the fraction of the labor force in the population and thus mechanically increasing productivity per capita.
However, it has been proposed that in the long term, the parameters should be replaced with higher fertility and higher mortality. This is widely accepted due to evolutionary pressure and more so because of the well-established correlation linking falling fertility to social and economic development. For the purpose of this analysis, we have proceeded to study the demographic transition of Madagasca