Author(s)

Anwar Nejim

Corresponding Author

Anwar Nejim

Abstract

The continuous improvement of the aging level of the population has caused insufficient labor supply, reduced the efficiency of labor production and hindered the healthy and sustainable development of the economy. In this paper, This paper probes into the influence of population aging on China's economic development. On this basis, by constructing two models of fixed effect and intermediate effect, the effect of population aging on economic growth is tested. The results show that population aging is not conducive to economic growth, and it is statistically significant. For every 1% increase in the level of population aging, economic growth will decrease by 0.107%. The influence of consumption on economic growth is positive and fails to pass the significance test, so on the whole, the influence of consumption on economic growth is uncertain. China should formulate a reasonable pension policy according to local conditions, so as to speed up the construction of the pension system, increase the birth rate, promote household consumption, realize innovation-driven development, and realize industrial transformation and upgrading as soon as possible to cope with the impact of population aging on economic growth.

Keywords

Finite crowding theory, Economic growth, Population aging