The Impact of Population Aging on Economic Growthin Asian Countries
Purpose: The purpose of this study is to examine the impact of population aging on economic growth. This paper forecasts the impact of population aging (demographic changes) on economic growth (measured by labor supply, household savings, and labor productivity) in three countries China, Japan, and Malaysia. Design/methodology/approach: Data from 1990 to 2018 is used in this study. Interestingly, findings suggest that the older the population, the greater the negative impact on the economy. Findings: The results show that population aging has a negative effect on labor supply and labor productivity in the three countries. Surprisingly, the impact of population aging on house saving is negative in Japan and Malaysia but positive in China. Practical implementation: The results of this study may benefit the economists and governments regulators in these three Asian countries- China, Japan, and Malaysia- to overcome the population aging problem in the early stages by investigating the causing of these demographic changes that will negatively affect the economic position in each of these countries. Originality value: The research refers to the aging problem in China, Japan and Malaysia and how this problem may affect the economic growth in these countries.