Population ageing and FDI inflows in OECD countries: a dynamic panel cointegration analysis. Issue 13 (29th July 2021)

• Record Type: Journal Article
• Authors: Mitra, Rajarshi; Abedin, Md. Thasinul
• Is Part Of: Applied economics letters. Volume 28:Issue 13(2021)
• Page Start: 1071
• Page End: 1075
• Publication Date: 2021-07-29
• Subjects: FDI -- demography -- unit root -- cointegration; F21 -- F41 -- N20; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2020.1796914
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: Although population ageing has been of major socio-economic concern in industrialized economies, hardly any attempt has been made to study the direct effects of a declining population on FDI inflows in OECD countries based on panel cointegration analysis. We investigate the short-run and long-run effects of population ageing on net FDI inflows (% of GDP) for 22 OECD countries over the period 1980–2017. The short-run effects are statistically insignificant; however, a significantly positive association between population ageing and net FDI inflows (% of GDP) is observed in the long-run. The results are robust across the two different measures of population ageing. The important policy implications are discussed.