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Impact of population aging and declining birth rates on household consumption structure: Evidence from China

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  • Fan, Shiwen
  • Hui, Liang
  • Dou, Lei
  • Hui, Meimei

Abstract

The age structure of a population is a crucial indicator of a country's economic development. This study analyzes the impact of population aging and declining birth rates on the household consumption structure in urban and rural China. China, the largest country by population, is selected owing to its significance in population studies. Using a fixed effects model, our findings reveal that in China, a higher proportion of youth in the population positively affects residents’ spending on survival consumption while negatively affecting developmental consumption. Conversely, a higher proportion of older adults in the population negatively affects survival consumption while positively influencing developmental consumption.Through the research in this article, it is hoped that the results can provide some reference significance for the changes in population age structure and the development of resident consumption.

Suggested Citation

  • Fan, Shiwen & Hui, Liang & Dou, Lei & Hui, Meimei, 2024. "Impact of population aging and declining birth rates on household consumption structure: Evidence from China," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324009620
    DOI: 10.1016/j.frl.2024.105932
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    References listed on IDEAS

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    Cited by:

    1. Guangzhi Qi & Zhibao Wang & Chengxin Wang, 2025. "Towards Demographic Sustainability: Multi-Scale Spatiotemporal Evolution and Factors of Population Aging in the Bohai Rim Region," Sustainability, MDPI, vol. 17(4), pages 1-26, February.
    2. Li, Zeyu & Jiang, Yanyan, 2025. "Strengthening resilience through trade: Development of service trade and enhancing export resilience," Finance Research Letters, Elsevier, vol. 78(C).
    3. Wen, Huwei & Shang, Junjie & Nghiem, Xuan-Hoa, 2025. "Does artificial intelligence matter for the population aging-inclusive growth nexus? International evidence," Telecommunications Policy, Elsevier, vol. 49(4).
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    5. Zheng, Lili & Zhang, Ze, 2025. "Inclusive agricultural insurance and rural consumption in China: The role of income stabilization and threshold effects," Economic Modelling, Elsevier, vol. 153(C).
    6. Jia, Zhijie & Zhang, Hanyan, 2025. "From carbon emission trading to inequality: The regressive effects of China’s ETS via residential carbon footprints," Energy Economics, Elsevier, vol. 152(C).

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    Keywords

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    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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