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Population ageing and FDI inflows in OECD countries: a dynamic panel cointegration analysis

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  • Rajarshi Mitra
  • Md. Thasinul Abedin

Abstract

Although population ageing has been of major socio-economic concern in industrialized economies, hardly any attempt has been made to study the direct effects of a declining population on FDI inflows in OECD countries based on panel cointegration analysis. We investigate the short-run and long-run effects of population ageing on net FDI inflows (% of GDP) for 22 OECD countries over the period 1980–2017. The short-run effects are statistically insignificant; however, a significantly positive association between population ageing and net FDI inflows (% of GDP) is observed in the long-run. The results are robust across the two different measures of population ageing. The important policy implications are discussed.

Suggested Citation

  • Rajarshi Mitra & Md. Thasinul Abedin, 2021. "Population ageing and FDI inflows in OECD countries: a dynamic panel cointegration analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 28(13), pages 1071-1075, July.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:13:p:1071-1075
    DOI: 10.1080/13504851.2020.1796914
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    Cited by:

    1. Jeunghan Lee & Keuntae Cho, 2023. "Effects of Science, Technology, and Innovation Official Development Assistance on Foreign Direct Investment in Developing Countries," Sustainability, MDPI, vol. 15(16), pages 1-13, August.

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