IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v19y2008i5-6p389-399.html
   My bibliography  Save this article

East Asian economic development: Two demographic dividends

Author

Listed:
  • Mason, Andrew
  • Kinugasa, Tomoko

Abstract

Countries throughout the world are experiencing changes in their population age structure, but they are particularly rapid in East Asia. During the last part of the 20th Century the region benefited from an increased concentration of population in the working ages. Population aging is now the increasing rapidly with potentially adverse economic effects. The evidence presented here shows that population aging can lead to a second demographic dividend because population aging may lead to rapid capital accumulation. This appears to have occurred in East Asia because public support systems for the elderly are smaller and because family support systems are in decline.

Suggested Citation

  • Mason, Andrew & Kinugasa, Tomoko, 2008. "East Asian economic development: Two demographic dividends," Journal of Asian Economics, Elsevier, vol. 19(5-6), pages 389-399.
    • Handle: RePEc:eee:asieco:v:19:y:2008:i:5-6:p:389-399
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049-0078(08)00083-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kelley, Allen C & Schmidt, Robert M, 1996. "Saving, Dependency and Development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(4), pages 365-386, November.
    2. Zilcha, Itzhak & Friedman, Joseph, 1985. "Saving behavior in retirement when life horizon is uncertain," Economics Letters, Elsevier, vol. 17(1-2), pages 63-66.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Bloom, David E & Williamson, Jeffrey G, 1998. "Demographic Transitions and Economic Miracles in Emerging Asia," The World Bank Economic Review, World Bank, vol. 12(3), pages 419-455, September.
    5. Lee, Ronald & Mason, Andrew & Miller, Timothy, 2000. "From Transfers to Individual Responsibility: Implications for Savings and Capital Accumulation in Taiwan and the United States," Arbetsrapport 2000:3, Institute for Futures Studies.
    6. David E. Bloom & David Canning & Bryan Graham, 2003. "Longevity and Life‐cycle Savings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 319-338, September.
    7. Andrew Mason & Tomoko Kinugasa, 2005. "Why Nations Become Wealthy: The Effects of Adult Longevity on Saving," Working Papers 200514, University of Hawaii at Manoa, Department of Economics.
    8. Junji Kageyama, 2003. "The Effects of A Continuous Increase in Lifetime on Saving," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(2), pages 163-183, June.
    9. David M. Cutler & James M. Poterba & Louise M. Sheiner & Lawrence H. Summers, 1990. "An Aging Society: Opportunity or Challenge?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 21(1), pages 1-74.
    10. Kelley, Allen C, 1988. "Economic Consequences of Population Change in the Third World," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1685-1728, December.
    11. Sebnem Kalemli-Ozcan & David Weil, 2010. "Mortality change, the uncertainty effect, and retirement," Journal of Economic Growth, Springer, vol. 15(1), pages 65-91, March.
    12. Robert M. Schmidt & Allen C. Kelley, 1996. "Saving, dependency and development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(4), pages 365-386.
    13. Mason, Andrew & Tapinos, Georges (ed.), 2000. "Sharing the Wealth: Demographic Change and Economic Transfers between Generations," OUP Catalogue, Oxford University Press, number 9780198296201, Decembrie.
    14. Akira Yakita, 2001. "Uncertain lifetime, fertility and social security," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(4), pages 635-640.
    15. World Bank, 2003. "World Development Indicators 2003," World Bank Publications - Books, The World Bank Group, number 13920, December.
    16. repec:fth:harver:1490 is not listed on IDEAS
    17. Robert L. Clark & Naohiro Ogawa & Andrew Mason (ed.), 2007. "Population Aging, Intergenerational Transfers and the Macroeconomy," Books, Edward Elgar Publishing, number 12608.
    18. Andrew Mason, 2001. "Population Change and Economic Development: What Have we Learned from the East Asia Experience?," Working Papers 200103, University of Hawaii at Manoa, Department of Economics.
    19. Ronald D Lee & Andrew Mason & Tim Miller, 1998. "Saving, Wealth, and Population," Working Papers 199805, University of Hawaii at Manoa, Department of Economics.
    20. Ronald Lee & Sang-Hyop Lee & Andrew Mason, 2006. "Charting the Economic Life Cycle," NBER Working Papers 12379, National Bureau of Economic Research, Inc.
    21. Menahem E. Yaari, 1965. "Uncertain Lifetime, Life Insurance, and the Theory of the Consumer," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 137-150.
    22. Andrew Mason & Ronald Lee & An-Chi Tung & Mun-Sim Lai & Tim Miller, 2009. "Population Aging and Intergenerational Transfers: Introducing Age into National Accounts," NBER Chapters, in: Developments in the Economics of Aging, pages 89-122, National Bureau of Economic Research, Inc.
    23. Kinugasa, Tomoko & Mason, Andrew, 2007. "Why Countries Become Wealthy: The Effects of Adult Longevity on Saving," World Development, Elsevier, vol. 35(1), pages 1-23, January.
    24. Alwyn Young, 1992. "A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore," NBER Chapters, in: NBER Macroeconomics Annual 1992, Volume 7, pages 13-64, National Bureau of Economic Research, Inc.
    25. Strawczynski, Michel, 1993. "Income uncertainty, bequests and annuities," Economics Letters, Elsevier, vol. 42(2-3), pages 155-158.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrew Mason & Ronald Lee & Sang-Hyop Lee, 2010. "The Demographic Transition and Economic Growth in the Pacific Rim," NBER Chapters, in: The Economic Consequences of Demographic Change in East Asia, pages 19-55, National Bureau of Economic Research, Inc.
    2. Laishram Ladusingh & M.R. Narayana, 2012. "Demographic dividends for India: evidence and implications based on National Transfer Accounts," Chapters, in: Donghyun Park & Sang-Hyop Lee & Andrew Mason (ed.), Aging, Economic Growth, and Old-Age Security in Asia, chapter 7, pages 203-230, Edward Elgar Publishing.
    3. Andrew Mason & Tomoko Kinugasa, 2005. "Why Nations Become Wealthy: The Effects of Adult Longevity on Saving," Working Papers 200514, University of Hawaii at Manoa, Department of Economics.
    4. Andy Mason & Sang-Hyop Lee & Ronald Lee, 2010. "Will Demographic Change Undermine Asia’s Growth Prospects?," Chapters, in: Masahiro Kawai & Jong-Wha Lee & Peter A. Petri & Giovanni Capanelli (ed.), Asian Regionalism in the World Economy, chapter 3, Edward Elgar Publishing.
    5. Kinugasa, Tomoko & Mason, Andrew, 2007. "Why Countries Become Wealthy: The Effects of Adult Longevity on Saving," World Development, Elsevier, vol. 35(1), pages 1-23, January.
    6. David E. Bloom & David Canning, 2004. "Global demographic change : dimensions and economic significance," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 9-56.
    7. Lindh, Thomas & Malmberg, Bo, 2007. "Demographically based global income forecasts up to the year 2050," International Journal of Forecasting, Elsevier, vol. 23(4), pages 553-567.
    8. Lau, Sau-Him Paul, 2014. "Fertility and mortality changes in an overlapping-generations model with realistic demography," Economic Modelling, Elsevier, vol. 38(C), pages 512-521.
    9. Hiroyuki Taguchi & Ni Lar & Sereyvuth Ky, 2021. "Revisiting the effects of demographic dynamics on economic growth in Asia: a panel vector‐autoregressive approach with a saving channel," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(2), pages 77-94, November.
    10. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    11. Eytan Sheshinski, 2005. "Longevity and Aggregate Savings," Discussion Paper Series dp403, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    12. David E. Bloom & David Canning & Bryan Graham, 2003. "Longevity and Life‐cycle Savings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 319-338, September.
    13. Bloom, David E. & Canning, David & Mansfield, Richard K. & Moore, Michael, 2007. "Demographic change, social security systems, and savings," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 92-114, January.
    14. Miguel Sánchez-Romero, 2013. "The role of demography on per capita output growth and saving rates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1347-1377, October.
    15. Mapa, Dennis S & Bersales, Lisa Grace S, 2008. "Population Dynamics and Household Saving: Evidence from the Philippines," MPRA Paper 21245, University Library of Munich, Germany.
    16. Koji Yasuda, 2022. "Microdata analysis about the effects of health status and bequest motive on the elderly household assets in Japan," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 27-41, February.
    17. Jeffrey G. Williamson, 2013. "Demographic Dividends Revisited," Asian Development Review, MIT Press, vol. 30(2), pages 1-25, September.
    18. Taguchi, Hiroyuki, 2021. "A revisit to effects of demographic dynamics on economic growth in Asia," MPRA Paper 110609, University Library of Munich, Germany.
    19. Ronald Lee & Andrew Mason, 2010. "Fertility, Human Capital, and Economic Growth over the Demographic Transition [Fécondité, capital humain et croissance économique au cours de la transition démographique]," European Journal of Population, Springer;European Association for Population Studies, vol. 26(2), pages 159-182, May.
    20. Taguchi, Hiroyuki & Latjin, Mirani, 2022. "The effects of demographic dynamics on economic growth in EU economies: A panel vector autoregressive approach," MPRA Paper 113596, University Library of Munich, Germany.

    More about this item

    Keywords

    Population Aging Saving Wealth;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:19:y:2008:i:5-6:p:389-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.