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Contribution of increased life expectancy to economic growth: evidence from CEE countries

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  • Gindra Kasnauskiene

    (Vilnius University)

  • Karol Michnevic

    (Vilnius university)

Abstract

Population aging in a backdrop of growing life expectancy can be seen in many advanced economies, but the rapid pace of these demographic changes in Central and Eastern Europe (CEE) makes it a pressing issue for the region. We investigate these two phenomena and compare results with prior research to determine their separate and combined effect on output growth in a panel regression model using Eurostat data for the period of 1996 to 2013. Our findings point to increasing life expectancy having a negative effect on the economy and the share of the population in the 30-59 age range affecting it positively. The conclusions of our research demonstrate the utility of augmenting macroeconomic models with a demographics-sensitive component and the urgency of addressing the accelerating demographic decline in the region.

Suggested Citation

  • Gindra Kasnauskiene & Karol Michnevic, 2017. "Contribution of increased life expectancy to economic growth: evidence from CEE countries," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(2), pages 82-99, November.
    • Handle: RePEc:sek:jijoes:v:6:y:2017:i:2:p:82-99
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    More about this item

    Keywords

    demographics; life expectancy; population aging; economic growth; CEE countries;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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