Försörjningsbördan - tillväxtens stora utmaning? En paneldataanlys över världens länder

Abstract

This paper aims to investigate the relationship between economic growth and age dependency, divided into old and young, and include general government final consumption expenditure as an important control variable. Earlier research has mainly looked at specific countries or regions when conducting their analysis. By looking at all different countries in the world this paper differentiates itself slightly from previous papers and the result suggests that there is a significant relationship when it comes to youth age dependency ratio. Additionally, there is some awareness put on China and Japan in this paper for concretising reasons. Firstly, when it comes to young age dependency, this paper finds a significant negative relationship in the short-term and in the medium-term. The main joint reasons for these results, according to previous research, seem to be lower labour participation rates, less consumption and fewer investments. In turn, this might lead to lower economic growth. Secondly, old age dependency is not significant when looking at both time periods. Previous research predicts that this is going to be an issue for countries in the near future.