The Impact of Population Ageing and Fertility Rate on Economic Growth : New Evidence Using Dynamic Heterogeneous Panel

This study aims to empirically analyse the influence of an ageing population and fertility rate on economic development for a sample of 98 nations according to their income level from 1990 to 2019. The dynamic heterogeneous panel data technique namely pool-mean group and mean group estimators are used in analyzing the impact of population ageing and fertility on the economic growth across countries' income levels. The main findings revealed that an ageing population has a negative long-run influence on economic development in high-, lower-middle- and low-income nations, and a drop in fertility rate has a favourable long-run impact on the economic growth in all nations. These findings signal that the government need to precisely implement its ageing and population policy in moderating the negative effect of population ageing by encouraging the idea of productive and active ageing