ABSTRACT
The aim of this article is to examine the relationship between demographic transition and economic growth on the basis of the literature review. The demographic transition involves four phases in which fertility and mortaliy rates and life expectancy show differences according to the developmental features of each phase. There are different theories on the relationship between demographic transition and the economic growth. The pessimistic theory which has its root from Thomas Malthus claims that the population growth causes economic deterioration. The optimistic theory opposes the Malthusian approach and asserts that there is a positive relationship between the population and the economic growth. The neutralist theory supports the idea that there is no significant relationship between them. Although this discussion on population and economic growth continues, there is a current challenge for the world which is having ageing populations. The implications give the signal that both developed and developing countries are following this trend and it is a threat hindering to have effective labor force, savings, and investments.
