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Skills, population aging, and the pattern of international trade

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  • Ke Gu
  • Andrey Stoyanov

Abstract

Some cognitive functions, such as the ability to update skills and adapt to changes in working conditions, are known to vary with age. With population aging it becomes increasingly difficult for firms to find workers with up‐to‐date skills. As a result, countries with aging populations start losing comparative advantage in industries that rely heavily on those skills. We test this hypothesis and find robust evidence for a significant negative effect of population aging on comparative advantage of a country in industries that are intensive in skill adaptability of labor force, in both the cross‐sectional and the dynamic panel data sets.

Suggested Citation

  • Ke Gu & Andrey Stoyanov, 2019. "Skills, population aging, and the pattern of international trade," Review of International Economics, Wiley Blackwell, vol. 27(2), pages 499-519, May.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:2:p:499-519
    DOI: 10.1111/roie.12386
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    Cited by:

    1. Polyzos, Efstathios & Kuck, Simon & Abdulrahman, Khadija, 2022. "Demographic change and economic growth: The role of natural resources in the MENA region," Research in Economics, Elsevier, vol. 76(1), pages 1-13.
    2. Balázs Zélity, 2023. "Age diversity and aggregate productivity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1863-1899, July.
    3. Wu, Feifei & Yang, Hongna & Gao, Bo & Gu, Yan, 2021. "Old, not yet rich? The impact of population aging on export upgrading in developing countries," China Economic Review, Elsevier, vol. 70(C).
    4. Cai, Jie & Stoyanov, Andrey, 2023. "Progressive income tax and comparative advantage in trade," Economic Modelling, Elsevier, vol. 129(C).
    5. Gu, Ke & Stoyanov, Andrey, 2022. "Female Labor Supply and International Trade," MPRA Paper 111778, University Library of Munich, Germany.

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