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The Impact of Population Ageing and Labor Supply on Economic Growth - Analysis Based on Panel Autoregressive Model

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  • Sun Changing

    (Shanghai University,Shanghai, China)

Abstract

Population Ageing will increase the proportion of the elderly in the population and affect the Labor supply, which will eventually have an effect on the economy. This paper first analyzes the impact of aging on labor supply and economic growth from the theoretical level. Population ageing argues will reduce the supply of labor and hamper economic growth. Then, based on the panel data of 31 provinces, municipalities and autonomous regions in China, this paper uses panel auto-regression Model. An empirical analysis of the interaction between population ageing and labor force is carried out by means of Impulse Response Diagram and variance decomposition. The study adds to evidence that ageing reduces the supply of labor and hence economic growth.

Suggested Citation

  • Sun Changing, 2020. "The Impact of Population Ageing and Labor Supply on Economic Growth - Analysis Based on Panel Autoregressive Model," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 11(1), pages 51-58, April.
    • Handle: RePEc:vrs:hjobpa:v:11:y:2020:i:1:p:51-58:n:4
    DOI: 10.2478/hjbpa-2020-0004
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    References listed on IDEAS

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    1. David E. Bloom & David Canning & Günther Fink, 2010. "Implications of population ageing for economic growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(4), pages 583-612, Winter.
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