Macroeconomic Implications Of Population. Evidence From Eu Countries: Developing Countries Versus Ex-Communist Countries

The relationship between population growth/decline and the evolution of macroeconomic indicators has emerged differently in different countries. It has become an issue debated by many countries, especially where there has been a decline in population. This article is based on data from 23 EU member states, for the period 1992-2021. For the analysis of the panel data, the study divides the 23 EU member states into two large groups: developed European countries and ex-communist countries. Linear regressions were constructed between population numbers as the independent variable and gross domestic product (GDP), total investment, inflation and unemployment rate as dependent variables. The result of the study states that population size does not have a strong influence on the total investment and unemployment rate indicators in either of the two categories of countries considered. Instead, the volume of the population is a representative component, with a significant impact on the size of GDP in the developed European countries of the European Union; there was also a significant impact on the size of inflation in the same group of countries. For ex-communist countries, things are a little bit different. This finding sustains that population is a fundamental element of macroeconomic indicators.