Factors Affecting the Change in Demographic Potential of the World’s Smallest Economies

Chapter 12 examines the fundamental factors that impact the demographic potential of the world’s smallest economies: natural increase and migration. It provides a detailed analysis of the natural increase rates of the countries in relation to the demographic phases in which the world’s smallest economies currently are, based on Warren Thomson’s Demographic Transition Model. The factors contributing to the disparities in natural increase rates, which are closely correlated with the level of economic development of the world’s smallest economies, are examined. The second section of the chapter addresses the phenomenon of migration, which also influences population change. The low level of economic development in the majority of the world’s smallest economies results in a significant number of residents seeking employment abroad in countries with higher levels of economic development. This results in waves of emigration in many of the world’s smallest economies.