<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

HOLISTICA – Journal of Business and Public Administration

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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...

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

Published Online: Apr 13, 2020

Page range: 51 - 58

Received: Oct 01, 2019

Accepted: Feb 01, 2020

DOI: https://doi.org/10.2478/hjbpa-2020-0004

Keywords
Population Ageing, Panel autoregressive model, pulse effect, variance decomposition

© 2020 Changing Sun, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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

Published Online: Apr 13, 2020

Page range: 51 - 58

Received: Oct 01, 2019

Accepted: Feb 01, 2020

DOI: https://doi.org/10.2478/hjbpa-2020-0004

KeywordsPopulation Ageing, Panel autoregressive model, pulse effect, variance decomposition

© 2020 Changing Sun, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Population Ageing, Panel autoregressive model, pulse effect, variance decomposition