Notes on Economic Growth with Scale Effects: Is Depopulation Compatible with Growth?

Masao Nakagawa¹, Asuka Oura², Yoshiaki Sugimoto^3*

¹Graduate School of Social Sciences, Hiroshima University, Higashi Hiroshima, Hiroshima, Japan.
²Graduate School of Economics, Osaka University, Toyonaka, Osaka, Japan.
³Faculty of Economics, Kansai University, Suita, Osaka, Japan.

DOI: 10.4236/tel.[phone]                

Abstract

This research develops a simple theory to analyze the compatibility of depopulation and sustainable growth. By introducing the scale effect of aggregate rather than average human capital, it shows that the economy may enter a sustainable growth path with fertility recovery, keeping away from a non-Malthusian poverty trap.

Keywords

Scale Effect, Depopulation, Human Capital, Growth

Conflicts of Interest

The authors declare no conflicts of interest.

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