Oil Rent, Demographic Bonus, and Economic Development: Theory and Evidence

Abstract This project examines the effect of demographic bonus on the economic growth taking into account the role of resource rents. We aim to show that demographic bonus does not automatically lead to a higher growth. The final effect may depend on the resource rents. In a theoritically based panel data analysis context, using data of more than 150 countries from 1970-2006, we aim to show that higher resource rents moderates the positive effect of demographic bonus across countries. These results shed lights on a new aspect of natural resource curse in economic growth literature. JEL classification: Q32; Q43 Key words: oil rents, demographic transition, economic growth, natural resource curse