Does an Ageing Population Diminish or Enhance Economic Growth? : A Survey of Literature:

Abstract

This paper is in line with the theme of survey literatures of ageing society and economic growth. Its knowledge border is also reached into diminish and enhance the growth. The former illustrates the causes of the negative impacts of old population on growth. It reveals that low fertility, long life expectancy, low consumption as well as high public spending on health care lead aggregate output growth decline in the long run. Meanwhile, the latter attempts to explain the hypotheses of why aging agent can contribute the economic growth. The key issue is the human capital accumulation according to the proposition of replicated economy. Further, the elderly factors positively affect the economic growth via increase in the effective labor, knowledge transfer as well as change in saving patterns. In conclusion, tracking down the previous researches, the conceptual framework is contributed. It is schematically represented the linkages underlying the effects of aging population on economic growth.