CONTRIBUTION OF INCREASED LIFE EXPECTANCY TO ECONOMIC GROWTH: EVIDENCE FROM CEE COUNTRIES

Abstract

Population aging in a backdrop of growing life expectancy can be seen in many advanced economies, but the rapid pace of these demographic changes in Central and Eastern Europe (CEE) makes it a pressing issue for the region. We investigate these two phenomena and compare results with prior research to determine their separate and combined effect on output growth in a panel regression model using Eurostat data for the period of 1996 to 2013. Our findings point to increasing life expectancy having a negative effect on the economy and the share of the population in the 30-59 age range affecting it positively. The conclusions of our research demonstrate the utility of augmenting macroeconomic models with a demographics-sensitive component and the urgency of addressing the accelerating demographic decline in the region.

Data:
Received: 5 Sep 2017
Revised: 20 Oct 2017
Accepted: 6 Nov 2017
Published: 20 Nov 2017