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The relation between an ageing population and economic growth in Bangladesh: Evidence from an endogenous growth model

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  • Mamun, Shamsul Arifeen Khan
  • Rahman, Mohammad Mafizur
  • Khanam, Rasheda

Abstract

This paper examines the short-run and long-run relationships between an ageing population and economic growth in Bangladesh using time series data for the period between 1972–2015. We employed a bivariate endogenous growth model to investigate the relationship between the population aged 65 years and above and per capita gross domestic product (GDP). The study found that there is a long-run positive relationship between the ageing population and per capita real GDP. The relationship runs from an ageing population to per capita real GDP, given that there is an increasing capital formation process in the economy. Therefore, the elderly population is not a matter of concern for Bangladesh as long as per capita capital formation has been greater than that of per capita ageing population.

Suggested Citation

  • Mamun, Shamsul Arifeen Khan & Rahman, Mohammad Mafizur & Khanam, Rasheda, 2020. "The relation between an ageing population and economic growth in Bangladesh: Evidence from an endogenous growth model," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 14-25.
    • Handle: RePEc:eee:ecanpo:v:66:y:2020:i:c:p:14-25
    DOI: 10.1016/j.eap.2020.02.001
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    More about this item

    Keywords

    Bangladesh; Ageing population; Economic growth; Time series analysis; Cointegration analysis;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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