1. Introduction
According to the data of seventh census in 2020, China’s population of people aged 65 and above was 190.64 million, accounting for 13.50% of the total population, indicating that the country is rapidly aging [
1]. China found itself in a challenging position of “getting old before getting rich” [
2]. Dealing with the problem of population aging is critical in determining a country’s long-term economic growth momentum, and is also a key factor in great power competition in the 21st century. China is confronted with unprecedented challenges in rural and urban setting [
3]. The “14th Five-Year Plan for National Aging Development and Elderly Care Service System Plan” was promulgated in 2021, officially listing active response to population aging as a national strategy [
4]. The development of the aging industry will have a significant and far-reaching impact on China’s economic and social development during the “14th Five-Year Plan” period, as well as the overall process of building a socialist modernized country.
In recent years, the importance of high-quality development
1 in China has been emphasized [
5,
6]. There is a significant relationship between regional economy and the aging industry, which promote and develop in tandem. Therefore, the coordinated development of the regional economy and the aging industry becomes an important part of the regional economy’s high-quality development. However, what does not match the rapid development of China’s economy is that China’s aging industry is still in its infancy and is unable to meet the rapidly growing demand for elderly care service, which induced by the rapid population aging [
7]. There are regional imbalances and deficiencies in China’s economic development and aging industry [
8]. For example, the eastern coastal regions of China are economically developed but have a serious problem with aging, while the western regions are underdeveloped despite having a more favorable population structure than the east [
9]. At the same time, the elderly care issue is a problem in large cities such as Beijing, Tianjin, and Shanghai [
10]. Therefore, studying the status quo and relationship between the regional aging industry and economic development, as well as analyzing the main factors affecting the coordinated development of them, not only solves the aging problem, develops and strengthens the aging industry, but also provides impetus to the high-quality economic development.
To this end, we pursue three objectives in this study. First, we aim to gauge the law of coordinated development of the coupling between the aging industry and regional economy development, as well as the distribution characteristics and variation trend of the coupling coordination degree. Our second objective is to explore the spatial effects of coordinated development between the aging industry and economic development, and to conduct in-depth analysis of related influencing factors. Third, we hope to provide valuable empirical results and theoretical exploration for the formulation of relevant policies.
The remainder of the study is organized as follows.
Section 2 provides a review on relevant literatures.
Section 3 presents the data sources and the theoretical framework, while
Section 4 analyzes the coupling and coordinated development of aging industry and regional economy.
Section 5 empirically studies the influencing factors of coupling coordination between aging industry and regional economic development and
Section 6 contains our conclusions.
2. Literature Review
Western academic circles were more mature in studying the ageing problem than Chinese academic circles because most European and American countries entered the aging society with various degrees around the 1980s. They generally refer to elderly-related industries, such as the “health industry” and “silver hair industry”, but they have no clear concept of the aging industry. While research on the aging industry in China gradually appeared in papers, academic works, policies, and regulations since developing the undertaking of the elderly was clearly proposed in the 1980s [
11], but the concept and connotation of the aging industry are not unified. Some scholars proposed that the aging industry is driven by the increase in demand from the elderly consumer market. Tian believed that the “aging industry” is a general term for the non-governmental profit-making activities that provide goods and services to the elderly with the goal of meeting the needs of high-level life and culture for the elderly [
12]. In 2020, the National Bureau of Statistics issued the “Statistical Classification of the Aging Industry (2020)”, which defined the aging industry as a collection of production activities that ensure and improve the life, health, safety, and participation of the elderly in social development, and provide the public with the production of various elderly care and related products.
China’s economy is currently transitioning from a stage of high-speed growth to a stage of high-quality development. Sun Zhijun et al. believed that high-quality development research is still in its early stages, and that high-quality economic development is guided by the concept of coordination and balance to improve economic stability [
13]. From the perspective of economic theory, Jin Bei proposed that high-quality development requires implementation of a comprehensive strategy, as well as balance and coordination of various policy objectives to achieve the multi-dimensional and desirable goal of high-quality development [
14]. Therefore, coordinated and balanced development is the core content of high-quality economic development. High-quality development is inclusive and a “co-evolution” in nature, achieving economic, social, and natural synchronization and coordination [
15]. High-quality development is reflected in the optimization of industrial structure, the synergy, integrity, inclusiveness, and openness of industrial and regional economic development, as well as production efficiency, technological innovation, and green development at the enterprise level [
16]. As an industry meeting the needs of specific groups, the aging industry plays a pivotal role in promoting economic development in China. High-quality development of the aging industry is also an important part of high-quality economic development.
The aging of the population stimulated the development of the aging industry, which is closely linked to economic development. Clark Tibbits, known as the
father of gerontology in the United States, published the book
Handbook of Social Gerontology in 1960, which revealed the interaction between population aging and social and economic development, and explained the importance of aging issues [
17]. With western countries entering the aging society, economists and demographers began to pay attention to the aging industry, pension issues and its economic effects [
18]. Western academics carried out research on elderly consumption, aging policies and systems, the development of the aging industry chain, and the relationship between elderly care and society. It is argued that establishing the government welfare planning system on the basis of the market would be more efficient [
19]. In the case of Japan, the aging industry is classified into three categories: standard industry, related industry, and derivative industry [
20]. The old-to-young dependency ratio was found to be positively correlated with residents’ consumption [
21]. Furthermore, the rising consumption rate reflects the impact of the aging population on the social economy [
22]. The EU has a similar impact on population aging and fiscal solvency policy responses [
23].
In China, the aging industry was studied for more than 30 years. Initially, the study was based on foreign (western) research results. The research on aging industry was gradually expanded to include the perspective of development mode, path, development trend, and economic benefits [
24]. In comparison to the early days of qualitative analysis and research on aging industry, Chinese scholars have conducted more and more quantitative research in recent years, with the gradual enrichment and improvement of data. Using a panel data model, Huang Qian et al. examined the impact of population aging on innovation [
25]. Li Xinguang et al. employed the dual-zone spatial Dubin model (SDM) to analyze the space of China’s population aging on economic growth from the perspective of deep aging [
26].
Hou and Liao constructed an econometric model using spatial panel data from 30 provinces in China from 2004 to 2018 to examine the relationship between population aging, innovation, and industrial structure transformation [
27]. He and Yang used a coupling index system to empirically analyze the degree of coupling coordination between the broadened health industry and the aging industry [
28]. In general, research on the aging industry progressed from qualitative to quantitative, and the research content gradually expanded into other fields and industries of the social economy. However, little research has been conducted on the relationship between the aging industry and regional economy development. Based on the coupling coordination degree model, He and Wang took Jiangsu province as an example and analyzed the spatial–temporal evolution of the aging industry, regional economy, and their coupling coordination in Jiangsu Province in 2005, 2010, and 2015, then put forward some policy suggestions [
29].
It is therefore imperative to construct a comprehensive evaluation index system of the aging industry and regional economy development to measures the coupling and coordinated development level of the two systems in order to determine the coordinated development level of the aging industry and regional economy in various provinces and cities in China.
Our study contributes to the existing body of literature in two ways. First, to the best of our knowledge, we provide the first comprehensive analysis of the evolution characteristics, influencing factors and spatial effects of the coordinated development of China’s provincial aging industry and regional economy on the basis of provincial panel data. Second, we construct the spatial Dubin model to examine the influencing factors and spatial effect decomposition of the coordinated development of the aging industry and regional economy, which enriches the existing research in this topic and enable us to provide targeted policy guidance on how to make a high-quality development of both aging industry and regional economy.
5. Analysis of Influencing Factors of Coupling Coordination
According to the first law of geography, all things are related, and the closer the distance, the greater the connection [
35]. Since the Dutch economist Paelinck proposed the term “spatial econometrics” in 1975 [
36], after the pioneering work of [
37,
38], etc., the research on spatial correlation and spatial difference finally formed a framework for qualitative spatial metrology. The branch of econometrics that deals with spatial data is called “spatial econometrics” [
39]. Nowadays, spatial econometrics is widely recognized as a mainstream applied econometrics research method and is applied in many fields, such as urban economics, regional economics, real estate economics, and economic geography.
China has a vast territory, and the economic development of the east–west and the north–south is obviously different. The relationship between the aging industry and economic development in a region is also affected by other regions. But traditional econometric methods only consider the linear structure without considering the spatial factors. Utilizing traditional econometric methods to study relationship concerned with spatial factors will easily lead to deviations in the model estimation results. Therefore, it is necessary for us to further explore whether the coordinated development of the aging industry and regional economy in China is affected by neighboring regions. If there is an impact, what are the factors which affect the coordinated development and the extent of the impact? To this end, we introduce spatial correlation analysis to conduct a comprehensive analysis.
5.1. Selection and Description of Variables
The theme of this study is the coordinated development of the aging industry and the regional economy. Therefore, based on the previous indicator system and calculation results, the coordination index D is selected as the explained variable, denoted as (CID); the explanatory variables are selected from the evaluation indicators of the aging industry and regional economy described in the above sections. Above all, among these indicators, indicators with large absolute values not only have relatively large fluctuations, but also have a large degree of dispersion. Therefore, to reduce the possible heteroscedasticity and the difference between the estimated coefficients, the logarithm is used for the index variables with large absolute values; secondly, the variables with severe multicollinearity are eliminated through the VIF test, and finally, nine explanatory variables are obtained:
FROG = proportion of local fiscal revenue of GDP
FAOG = proportion of investment in fixed assets of GDP
LnPCG = logarithm of per capita GDP
ODR = elderly dependency ratio
LnIP = logarithm of the number of people insured in the basic pension insurance
LnINS = logarithm of the number of elderly care institutions
LnBED = logarithm of elderly care beds per one thousand people
EDU = the proportion of elderly care service personnel with college and above
OYR = the ratio of old and young
The descriptive statistics of each variable are shown in
Table 5.
5.2. Spatial Correlation Analysis
In order to test the spatial correlation of each variable, we use Stata software to calculate the global Moran’s index and Geary’s C index for verification. For various spatial weight matrices commonly used at present, the geographic distance (latitude and longitude, inverse of geographic distance) spatial weight matrix w1 is selected for calculation, ** and the results are shown in
Table 6.
Table 6 indicates that from 2009 to 2019, the Moran indices of the coordination indices of China’s provinces all passed the 1% significance test, and the Geary C index mostly passed the 1% significance test. The Moran index values were all greater than 0, and the Geary C index values were all less than 1, indicating that the overall coordination between the aging industry and regional economy in various provinces manifested positive spatial autocorrelation characteristics.
From the Moran scatter plot of the coordination index in 2009 and 2019 (
Figure 8), most provinces were concentrated in the first (HH) and third (LL) quadrants, that is, showing high and low aggregate characteristics. From 2009 to 2019, the number of provinces falling into the first and third quadrants increased, indicating that the spatial correlation of the coordination index was gradually significant.
Figure 8 also indicates that the developed provinces in the eastern and central regions fell into the first quadrant with high coordination(HH), while most of the western provinces fell into the third quadrant with low coordination (LL) (see
Table 7 for the region codes).
5.3. Model Constructing and Testing
5.3.1. Model Constructing
Due to the obvious spatial correlation between coupling and coordination indices of various provinces and municipalities, referring to relevant experience [
39], the general expression of the spatial panel model is as follow:
The explained variable is the coupling coordination index between the aging industry and regional economy development in the i region in year t; is the spatial autocorrelation coefficient of the explained variable; is the set of explanatory variables in the i region in year t; is the regression coefficient of the explanatory variable; is the spatial autocorrelation coefficient of each explanatory variable; is the spatial weight matrix element; and are the spatial and temporal fixed effects, respectively; represents the random disturbance termis; is the spatial autocorrelation coefficient of each disturbance term; when = 0, the above model is transformed into a spatial Durbin model; when = 0 and = 0, the model is transformed into a spatial autoregressive model (SAR); when = 0 and = 0, the model is transformed into a spatial error model (SEM).
5.3.2. Model Testing
Because the panel data in this study are about 31 selected provinces (municipalities) from 2009 to 2019, which belongs to short panel data, the unit root test is not needed. Through the LM test results, we found that the three tests for spatial error all rejected the null hypothesis of “no spatial autocorrelation”, and the two tests for spatial lag one rejected the null hypothesis. These results once again demonstrate that spatial econometric analysis should be utilized [
40].
The spatial panel model is generally divided into two types: random effect and fixed effect. According to the results of the Hausman test, the null hypothesis is rejected, indicating that there are significant differences between individual coefficients. Therefore, it is better to choose the fixed effect model. Since there are different types of spatial econometric models, LR and Wald tests are utilized to make choices. The results of LR (
p value) obviously reject the null hypothesis, indicating that the SDM model cannot degenerate into the SAR and SEM models, and the results of the Wald test also basically support the test results of the LR (see
Table 8 for detailed results).
Through the above tests, this study finally chooses the fixed effects of the optimal SDM for spatial econometric analysis.
5.4. Empirical Results Analysis
The analysis of fixed effects in spatial measurement includes three forms: spatial fixed, temporal fixed, and spatial and temporal double fixed. According to the estimation results of the SDM model in
Table 9, the spatial correlation under the spatial fixed effect passed the significance test, the R-square result is 0.3448, and the log-likelihood value is large, so the model has a high degree of fit with high reliability. This study will conduct a comprehensive analysis based on the estimation results of the spatial fixed effects model.
5.4.1. Model Results
In
Table 9, the spatial autoregression coefficient of the explained variable (coordination index)
= 0.515 is a positive value, and the
p value is significant at the 1% level, indicating that the explained variable has a positive spatial spillover effect on itself, which is completely consistent with the above-mentioned results verified by the Moran index, that is, the coordinated development of the aging industry and the regional economy in this region promotes the coordinated development of surrounding areas. From the statistical results of column Main (indicating the influence of explanatory variables on the explained variables in the same region), the coefficients of the ratio of old and young (OYR) and the ratio of old-age dependency (ODR) are negative, and reach the 1% level of significance, indicating that the two variables have a negative impact on the coordination index of the aging industry and regional economy in the region, that is, the smaller these two variables are, the more the regional coordination index will increase. Because these two variables are important indicators of population aging, the smaller the indicator’s value, the lower the degree of aging in the region, and the less pressure on the aging industry. The result also supports the rationality of the inverse index in the evaluation index system table of regional economy development level (see
Table 1). The coefficients, the proportion of local fiscal revenue (FROG), the proportion of fixed asset investment (FAOG), the logarithm of per capita GDP (LnPCG), the logarithm of old-age beds per one thousand person (LnBED), and the proportion of senior college and above pension service personnel (EDU), are positive and passed the 1% significance test, indicating that these variables have a significant positive impact on the coordinated development of the aging industry and the regional economy in the region.
From the statistical results of column Wx (which represents the spatial lag term of the explanatory variable), the logarithm of per capita GDP (LnPCG) and the elderly dependency ratio (ODR) reached the 1% level of significance, the proportion of elderly care service personnel with college and above (EDU) reached the 5% level of significance, the proportion of local fiscal revenue (FROG) and the ratio of old and young (OYR) reached the 10% level of significance, indicating that these variables have obvious spatial effect characteristics. Among them, variables FROG, LnPCG, EDU and OYR have a negative conduction effect on the explained variables in the surrounding areas, while the variable ODR has a positive conduction effect on the surrounding areas. In other words, high local fiscal revenue, high per capita GDP, high quality of elderly care service personnel, and low dependency ratio of the elderly population play a positive role in promoting local economic growth, which will attract various resources (labor population, capital, etc.) from neighbor areas to flow into the discussed area. It will have an adverse impact on the economic development of its neighbor, and then negatively affect the coordinated development of its neighbor.
5.4.2. Spatial Effect Decomposition
In the analysis of spatial econometric models, regression coefficients are unable to fully and accurately reflect the spatial spillover effects of explanatory variables, because the regression coefficients include direct effects and indirect effects, and the coefficients of the spatial lag terms of explanatory variables will also impact the indirect effects [
41]. Many scholars regard the estimated coefficient of the spatial lag variable as the “spatial spillover effect” of the variable, which easily causes misjudgment.
Therefore, based on the method of LeSage and Pace, this study reveals the influence of each explanatory variable on the coordination index of the aging industry and regional economy development through direct effects, indirect effects, and total effects [
42]. The direct effect represents the average impact of the explanatory variable on the explained variable (coordination index) in the region, the indirect effect represents the average effect of the explanatory variable on the explained variable (coordination index) in other regions, and the total effect represents the average effect of the explanatory variable on the explained variable (coordination index) in all regions.
Table 10 shows the estimated results of the direct and indirect effects.
From the results in
Table 10, the direct effect coefficients of ODR and OYR are negative, and both reach the 1% level of significance, indicating that the population aging has a significant negative impact on the coordinated development of the aging industry and the regional economy in the region. The higher the indexes, the more restrictive the coordinated development of the region. Moreover, the ODR has a significant (5% level) spatial spillover effect, which has a positive impact on the coordinated development of the neighbor regions. The possible explanation is that the increase of dependency ratio of the local elderly population will restrict local economic development, resulting in the outflow of labor and capital into its surrounding areas. Therefore, the level of coordination between the aging industry and economic development in the surrounding areas will be promoted.
The direct effect coefficients of FROG, FAOG, LnPCG, LnBED, and EDU are positive, and all passed the 1% significance test (EDU is 5% significance), indicating that these factors significantly affect the development of the aging industry and regional economy in its own region. Among these coefficients, LnPCG, EDU, and OYR significantly inhibit the coordinated development of the aging industry and regional economy in neighboring areas through indirect effects.
6. Conclusions
This study investigated the law, distribution characteristics, and changing trend of the coordinated development of China’s aging industry and regional economy, and the factors which affect the degree of coordination between the aging industry and economic development on the provincial level. In doing so, we constructed a comprehensive evaluation index system of the aging industry and regional economy development, introduced a coupling model based on the entropy weight method, and measured the coupling and coordinated development level of the two systems using data of 31 selected provinces (municipalities) in China from 2009 to 2019. The comprehensive analysis of the study reached the following conclusions:
Firstly, China’s aging industry developed unevenly. In the eastern and central regions, the aging industry was more developed than the national average. There were significant regional variations in the aging industry. In recent years, the regional differences narrowed, indicating that the development of the aging industry in underdeveloped regions accelerated.
Secondly, China’s eastern region had the highest level of development, far exceeding those of other regions. The economy of the northeast region has declined since 2014, and there was still no sign of improvement. Moreover, the differences in regional economy development widened, and the polarization increased.
Thirdly, the coordination between the aging industry and regional economy development in all provinces is good, and there is no imbalance, but the quality of the overall coordinated development is not high. The western region has the lowest level of coordinated development, and the coordination level of the northeast region gradually decreased.
Fourthly, a variety of socioeconomic and demographic factors affect the coordinated development of the aging industry and the regional economy, including local fiscal revenue, fixed asset investment, per capita GDP, elderly care beds, quality of elderly care service personnel, elderly dependency ratio, and the old-to-young ratio.
Finally, we found that the characteristics of spatial correlation became high–high and low–low agglomerations. Moreover, the coordinated development of the aging industry and the regional economy in a region can promote the coordinated development of its neighbor regions. Per capita GDP, the dependency ratio of the elderly population, the quality of elderly service personnel and the old-to-young ratio have obvious spatial transmission effects, especially the dependency ratio. The increase in the dependency ratio in one region will promote the coordinated development of its neighbor regions.
To support its aging population, China needs take actions in the following aspects:
Above all, to enhance policy and financial support to less developed regions, such as the western region and northeast region, and prevent further polarization of regional economic development.
In addition, in view of the spatial non-equilibrium distribution characteristics of the coordination between the aging industry and economic, especially the low coordination phenomenon in the western region, a differentiated development strategy should be developed to support low coordinated regions.
What is more, to improve the population structure and the quality of the population. To this end, the adjustment of the fertility policy and the implementation of the delayed retirement policy are conducive to the optimization of the age structure of the population (that is, to reduce the old-to-young ratio and the dependency ratio of the elderly), which in turn significantly promotes the coordination of regional aging industry and economic development. The improvement of the national education level, especially the education level of the elderly service personnel, will effectively improve the coordination level. Therefore, on the one hand, the government should increase investment in basic education, and on the other hand, it should increase efforts and policy support in the professional training of elderly service personnel.
Fourthly, the increase in local fiscal revenue and investment in fixed assets will also effectively improve the level of coordination. It is necessary to improve the gaps in public infrastructure and basic public services between regions, strengthen the construction of infrastructure, especially elderly care facilities including elderly beds, and make them match the regional economy development, so as to promote the good coordination between the aging industry and the regional economy.