Ageing population and economic growth nexus in Bangladesh: evidence from an endogenous growth model

Abstract

This paper examines short-run and long-run relationship between ageing population and economic growth in Bangladesh using time series data for the period of 1972-2015. We employ bivariate endogenous growth model, ARDL bounds test and Johensen test to investigate the relationship between the population aged 65 years and above, and per capita gross domestic product (GDP). The study has found that there is a long-run positive relationship between the aging population and per capita real GDP. The relationship runs from aging population to per capita real GDP, given that, there is an increasing capital formation process in the economy. Therefore, elderly population is not a matter of concern for Bangladesh as long as per capita capital formation has been greater than that of per capita ageing population

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