Demographic Transition Theory (DTT) explains how population growth changes when a society moves from traditional conditions to modern industrial and service-based development. It links changes in birth rates and death rates with improvements in health, education, urbanization and economic growth. Businesses use this understanding to forecast future market size, age structure, workforce availability and demand for products like healthcare, education, housing, insurance and consumer goods.
Demographic transition is the long-term shift from high birth rate and high death rate to low birth rate and low death rate, along with changes in population growth rate.
This time gap between falling deaths and falling births creates different stages of population growth.
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Any three stages of demographic transition are:
(Any three stages can be written.)
Birth rate declines in Stage 3 due to:
(Any three points can be written.)
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Demographic Transition Theory (DTT) explains how population growth changes when a society moves from traditional conditions to modern industrial and service-based development. It links changes in birth rates and death rates with improvements in health, education, urbanization and economic growth. Businesses use this understanding to forecast future market size, age structure, workforce availability and demand for products like healthcare, education, housing, insurance and consumer goods.
Demographic transition is the long-term shift from high birth rate and high death rate to low birth rate and low death rate, along with changes in population growth rate.
This time gap between falling deaths and falling births creates different stages of population growth.
Economic development affects demography:
Demography also affects development:
During Stage 3/early Stage 4, the working-age population can become relatively large and dependency ratio can fall. This creates an opportunity called demographic dividend—but only if there are jobs, skills and good health.
Deaths respond quickly to medicine and sanitation; births fall later because they depend on social norms, education, contraception and cost of children.
DTT helps forecast future age structure and service demand, supporting business forecasting and public planning.
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Demographic Transition Theory (DTT) explains the long-term change in population growth as a society develops. It describes how birth rate (BR) and death rate (DR) shift from high levels in traditional society to low levels in modern society, and how this affects the rate of population growth.
DTT is commonly explained in stages:
In Stage 1, both BR and DR are high due to poverty, poor sanitation and limited medical care, so population growth is low. In Stage 2, DR falls because of improved healthcare, food supply and sanitation, but BR stays high, leading to a population boom. In Stage 3, BR starts falling due to education, urbanization, family planning and changing social values; DR remains low, so growth slows. In Stage 4, both BR and DR are low and population becomes stable with increasing aging. Some models add Stage 5, where BR becomes very low, leading to negative growth and more aging.
Thus, demographic transition theory helps understand how population growth changes along with development and why different societies show different demographic patterns over time.