The Demographic Dividend and Institutions: A Comparison of Asia and Latin America

Abstract: This thesis investigates the relationship between the demographic dividend and institutions. The aim is to make an attempt of attaining further knowledge about the requirements for obtaining a demographic dividend. This is done through the comparison of Asian countries and South American countries. The obtained results confirm the positive effects of an increase in the working-age population relative to the total population, increased health, as well as the benefits of a reduced agricultural sector. It also finds support for the conditional convergence hypothesis. However, the results obtained from the institutional variables are, with few exceptions, found lacking statistical significance. The conclusion of this thesis is thus that it does not obtain any further knowledge about the relationship between the demographic dividend and institutions. However, it is successful in confirming previous literature.