Demographic transition and economic growth in Benin (Barthélémy Biao)
Around the world, countries are experiencing substantial changes in their age structures. Particularly, fertility is declining and the support ratio is rising in the developing countries. These changes have many implications for economic growth. The aim of this paper is to estimate the economic lifecycle deficit of Benin and generate evidence on Benin’s Demographic Dividend. We found that consumption is greater than production below age 30 and above age 61. The group in the middle, at age 30–61, supports these young and old people. A big part of the lifecycle deficit comes from the young age group. The overall lifecycle represents 30.7 percent of gross domestic product (GDP). The results also show that Benin began to enjoy its first Demographic Dividend in 1998. As main policy implications of our findings, the government needs to facilitate access to jobs for young people and improve social protection for the elderly.