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Open AccessArticle

Impact of Population and Workforce Aging on Economic Growth: Case Study of Taiwan

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Department of Accounting Information, National Taichung University of Science and Technology, Taichung 400-439, Taiwan
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Department of Public Finance and Taxation, National Taichung University of Science and Technology, Taichung 400-439, Taiwan
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Department of Economics, National Taiwan University, Taipei 100-116, Taiwan
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(22), 6301; https://doi.org/10.3390/su11226301
Received: 3 October 2019 / Revised: 30 October 2019 / Accepted: 7 November 2019 / Published: 9 November 2019
(This article belongs to the Special Issue Aging: Healthcare, Inequalities, Challenges and Trends)
Taiwan’s population is aging at a fast pace, and its aged society is expected to transition into a hyper-aged society within eight years. Population aging has been a matter of international concern; however, there remain differing views about its economic impact. Thus, this study aims to examine the impact of population and workforce aging on Taiwan using quarterly data from 1981–2017. The empirical results demonstrate that an aging workforce has a significantly positive impact on the rate of economic growth. However, the old-age dependency ratio has a significantly negative effect on economic growth. The empirical findings indicate that human capital is essential for total factor productivity (TFP) growth and that workforce and population aging mainly impact productivity through TFP. Accounting for policy factors, increasing the supply of the eldercare workforce and foreign manpower contribute toward countering the negative impact of an aging population on national economic growth. Policies on retirement, pension systems, health care, and human capital accumulation that target the aged population are discussed, accompanied by policy suggestions. View Full-Text
Keywords: population aging; workforce aging; economic growth; elder care population aging; workforce aging; economic growth; elder care
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Huang, W.-H.; Lin, Y.-J.; Lee, H.-F. Impact of Population and Workforce Aging on Economic Growth: Case Study of Taiwan. Sustainability 2019, 11, 6301.

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