In demography, demographic transition is a phenomenon and theory which refers to the historical shift from high birth rates and high death rates in societies with minimal technology, education and economic development, to low birth rates and low death rates in societies with advanced technology, education and economic development, as well as the stages between these two scenarios. In economic growth, the demographic transition has swept the world over the past two centuries, and the unprecedented population growth of the post-Malthusian period was reversed, reducing birth rates and population growth significantly in all regions of the world, and enabling economies to translate more of the gains of factor accumulation and technological progress into per capita income growth. The demographic transition strengthens economic growth process by three changes: (i) reduced dilution of capital and land stock, (ii) increased investment in human capital, and (iii) increased size of the labor force relative to the total population and changed age population distribution. Although this shift has occurred in many industrialized countries, the theory and model are frequently imprecise when applied to individual countries due to specific social, political and economic factors affecting particular populations.

Birth rate, also known as natality, is the total number of live human births per 1,000 population for a given period divided by the length of the period in years. The number of live births is normally taken from a universal registration system for births; population counts from a census, and estimation through specialized demographic techniques. The birth rate is used to calculate population growth. The estimated average population may be taken as the mid-year population.