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Funded Pensions and Economic Growth

Author

Listed:
  • Michiel Bijlsma

    (Tilburg University)

  • Johannes Bonekamp

    (Tilburg University and Netspar)

  • Casper Ewijk

    (University of Amsterdam and Netspar)

  • Ferry Haaijen

    (De Nederlandsche Bank)

Abstract

If larger pension savings lead to deeper capital markets, this can be expected to have a positive effect on economic growth in particular for firms that rely on external finance. We employ this differential impact on firms with less or more external finance to identify the effect of pension saving on economic growth. Using data for 69 industrial sectors in 34 OECD countries for the period 2001–2010, we find a significant impact of pension assets on growth for sectors that are more dependent on external financing. This relation is not significantly changed by the 2007–2008 banking crisis.

Suggested Citation

  • Michiel Bijlsma & Johannes Bonekamp & Casper Ewijk & Ferry Haaijen, 2018. "Funded Pensions and Economic Growth," De Economist, Springer, vol. 166(3), pages 337-362, September.
    • Handle: RePEc:kap:decono:v:166:y:2018:i:3:d:10.1007_s10645-018-9325-z
    DOI: 10.1007/s10645-018-9325-z
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    Cited by:

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    2. Mario Holzner & Stefan Jestl & David Pichler, 2022. "Public and private pension systems and macroeconomic volatility in OECD countries," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(2), pages 131-168, May.
    3. Ben Kajwang, 2022. "Role of pension management on economic growth: A review of literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 635-641, September.
    4. Mariam Voskanyan, 2023. "Funded Pension System Of Armenia: Problems, Development Prospects, Role In Economic Growth," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1 Year 20, pages 3-23.
    5. Paskalis Seran & Usil Sis Sucahyo & Apriani Dorkas Rambu Atahau & Supramono Supramono, 2023. "The Efficiency of Indonesian Pension Funds: A Two-Stage Additive Network DEA Approach," IJFS, MDPI, vol. 11(1), pages 1-19, February.
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    7. Adina Elena Dănuleţiu & Dan Constantin Dănuleţiu, 2018. "Analysis of the Romanian Private Pensions Evolution and Investments," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(1), pages 57-66.

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    More about this item

    Keywords

    Funded pensions; Financial structure; Economic growth;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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