IDEAS home Printed from https://ideas.repec.org/a/vrs/econom/v11y2023is1p37-54n2.html
   My bibliography  Save this article

Demographics’ Impact on Economic Growth in Central Europe and the Baltic States

Author

Listed:
  • Khachatrian Valentyna

    (Vinnytsia Institute of Trade and Economics of State University of Trade and Economics, Department of Economics and International Relations, Vinnytsia, Ukraine)

  • Nepytaliuk Anton

    (Vinnytsia Institute of Trade and Economics of State University of Trade and Economics, Department of Economics and International Relations, Vinnytsia, Ukraine)

  • Pasichnyi Mykola

    (State University of Trade and Economics, Department of Finance, Kyiv, Ukraine)

  • Nasibova Olha

    (National Technical University “Kharkiv Polytechnic Institute”, Department of Accounting and Finance, Kharkiv, Ukraine)

  • Tabenska Julia

    (Chernivtsi Institute of Trade and Economics of State University of Trade and Economics, Department of Finance, Accounting and Taxation, Chernivtsi, Ukraine)

Abstract

To ensure sustainable development and public welfare, the complex impact of demographic factors on macroeconomic dynamics should be investigated properly. Moreover, a few of the Sustainable Development Goals are interconnected robustly with demographic issues. There are some trends (e.g., substantial increase in longevity, rapidly lowered fertility, etc.) common for most advanced and emerging market economies. We examined the impact of selected socio-demographic factors on the real GDP per capita growth rates in a sample of the Baltic states and the Central European countries that have experienced economic transformations in the 1990s and either entered or declared their intentions to join the European Union in the future. We investigated general demographic dynamics in the region from 1960 to 2021. Due to the data availability, our special attention was focused primarily on the highlighted countries’ socio-demographic and macroeconomic variables from 2000 to 2021. We suggested that there was a certain interdependence between the working age population stratum specific weight, the elderly demographic dependency ratio, public healthcare spending, gross capital formation, and the real GDP per capita growth rates. In addition, we propose the main priorities for social and demographic policy in the field of well-being improvement. The potential ways to enhance the model – regarding healthcare, education, and the general profile of fiscal policy – have been disclosed as well.

Suggested Citation

  • Khachatrian Valentyna & Nepytaliuk Anton & Pasichnyi Mykola & Nasibova Olha & Tabenska Julia, 2023. "Demographics’ Impact on Economic Growth in Central Europe and the Baltic States," Economics, Sciendo, vol. 11(s1), pages 37-54, December.
    • Handle: RePEc:vrs:econom:v:11:y:2023:i:s1:p:37-54:n:2
    DOI: 10.2478/eoik-2023-0062
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eoik-2023-0062
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eoik-2023-0062?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salih Ozgur SARICA, 2014. "Regional Economic Growth. Socio-Economic Disparities among Counties," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 3(4), pages 25-36, December.
    2. Sandy Fréret & Denis Maguain, 2017. "The effects of agglomeration on tax competition: evidence from a two-regime spatial panel model on French data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1100-1140, December.
    3. Hilber, Christian A.L., 2010. "New housing supply and the dilution of social capital," Journal of Urban Economics, Elsevier, vol. 67(3), pages 419-437, May.
    4. Natalie Brady, 2002. "Striking a Balance: Centralised and Decentralised Decisions in Government," Treasury Working Paper Series 02/15, New Zealand Treasury.
    5. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    6. Tidiane Ly, 2018. "Sub-metropolitan tax competition with household and capital mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1129-1169, October.
    7. Jean Gabszewicz & Ornella Tarola & Skerdilajda Zanaj, 2016. "Migration, wages and income taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(3), pages 434-453, June.
    8. Zodrow, George R, 2003. "Tax Competition and Tax Coordination in the European Union," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(6), pages 651-671, November.
    9. repec:rri:wpaper:200803 is not listed on IDEAS
    10. Tomaz Dentinho & Vanda Serpa & Paulo Silveira & Joana Goncalves, 2006. "Land Use Change and Socio-Economic Evaluation in São Jorge Island (Between 15th and 20th Century)," ERSA conference papers ersa06p91, European Regional Science Association.
    11. Padovano, Fabio & Petrarca, Ilaria, 2014. "Are the responsibility and yardstick competition hypotheses mutually consistent?," European Journal of Political Economy, Elsevier, vol. 34(C), pages 459-477.
    12. Małgorzata Dobrowolska, 2021. "Crucial Importance of Work Productivity in the Conditions of a-Typical Employment," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 1, September.
    13. Deller, Steven C. & Hinds, David G. & Hinman, Donald L., 2001. "Local Public Services In Wisconsin: Alternatives For Municipalities With A Focus On Privatization," Staff Papers 12658, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    14. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    15. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    16. Stephen Billings & Thomas Thibodeau, 2011. "Intrametropolitan Decentralization: Is Government Structure Capitalized in Residential Property Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 416-450, May.
    17. Ines Helm & Jan Stuhler, 2024. "The Dynamic Response of Municipal Budgets to Revenue Shocks," American Economic Journal: Applied Economics, American Economic Association, vol. 16(4), pages 484-527, October.
    18. Matthieu Leprince & Sonia Paty & Emmanuelle Reulier, 2005. "Choix d'imposition et interactions spatiales entre collectivités locales. Un test sur les départements français," Recherches économiques de Louvain, De Boeck Université, vol. 71(1), pages 67-93.
    19. Nishitateno, Shuhei & Burke, Paul J., 2021. "Willingness to pay for clean air: Evidence from diesel vehicle registration restrictions in Japan," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    20. Teresa Garcia-Milà & Therese J. McGuire, 2001. "Tax incentives and the city," Economics Working Papers 631, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2001.
    21. Allen C. Goodman & Miron Stano, 2000. "Hmos and Health Externalities: A Local Public Good Perspective," Public Finance Review, , vol. 28(3), pages 247-269, May.

    More about this item

    Keywords

    population structure; demographic ageing; human capital; public welfare; social and fiscal policy mix; economic growth; sustainable economic development;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:econom:v:11:y:2023:i:s1:p:37-54:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.