Since the implementation of the policy of reform and opening to the outside world ten years ago in China，there have been rapid development in social productivity and unprecedented vigorous economic activities. Concurrent with such epoch-making developments，some traditional ideas are being transformed. All this has made，and will continue to make a decisive impact on population. This impact is particularly noticeable in the coastal areas which serve as the front lines of reform. The coastal areas include 12 provinces，autonomous regions and municipalities directly under the Central Government. They are Beijing，Tianjin，Hebei，Liaoning，Shanghai，Jiangsu，Zhejiang，Fujian，Shandong，Guangdong，Guangxi and Hainan. It is of considerable strategic significance to the interior and the entire China to study this impact by relating theory with practice and seek the inner workings of development. It should be admitted that there is great variation in the development among these 12 coastal regions，but they do have much in common. As far as the relation between population and economic development is concerned，it is most important to point out a direction where by economy stimulates demographic change and develops in concert with population dynamics. This direction is：develop economy and elevate the level of science and technology to bring about the transition from the quantitative cost of having more children to the qualitative cost of raising children. The improvement of the educational quality of population further advances technological progress and economic development in a benign cycle of low fertility—high educational quality—high labor productivity—low fertility.