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export subsidy (F1, H2)<br />A reduction in the cost of exports brought about by a government grant. There can be reductions in the costs of labour, of capital or of export financing, as well as more favourable tax treatment. SMITH referred to such subsidies as 'bounties'.
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Stage 3 has a population decline caused by couples desiring fewer children. Stage 4 is a mature society with a stable population brought about by higher incomes and better education, where couples have about two children each. Many Third World countries are still in the second stage; most of the OECD countries are in stage 4.<br /> <br /><em>Reference</em><br />Caldwell, J.C. (1976) 'Toward a restatement of demographic transition theory', Population and Development Review 2: 321 - 66.<br /> Notestein, E.W (1945) 'Population: the long view', in TW Schultz (ed.) Food for the World, Chicago: University of Chicago Press.
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