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Declining population and GDP growth

Author

Listed:
  • Theodore P. Lianos

    (Athens University of Economics and Business)

  • Anastasia Pseiridis

    (Panteion University)

  • Nicholas Tsounis

    (University of Western Macedonia
    Hellenic Open University)

Abstract

Businesspeople and politicians seem to be afraid that population reduction will be accompanied by economic recession. In this paper we examine the experience of some countries of various sizes in which population has been declining and observe how GDP, GDP per capita, unemployment rate, and labour force participation rate are evolving during the period that population is declining. Using the pooled mean group (PMG) estimation method, we find that population decline can go hand in hand with growing GDP and increasing per capita GDP, and at the same time the labour participation rate may increase and unemployment may fall.

Suggested Citation

  • Theodore P. Lianos & Anastasia Pseiridis & Nicholas Tsounis, 2023. "Declining population and GDP growth," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    • Handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-02223-7
    DOI: 10.1057/s41599-023-02223-7
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    References listed on IDEAS

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