Is There A Link Between Pension-Fund Assets And Economic Growth? - A Cross-Country Study
Pension fund assets have increased markedly during recent decades, and there are signs that this trend will continue, particularly given demographic changes and the current pattern of pension reform towards funded systems. However, research on the extent to which growth in pension assets contributes directly to economic growth is quite scarce. This is surprising since superiority of funding to pay-as-you-go links notably to the question whether funding improves economic performance sufficiently to generate the resources required to meet the needs of an ageing population. In this paper, we design a modified Cobb-Douglas production function with pension assets as a shift factor. We then employ a dataset covering 38 countries to investigate the direct link between pension assets and economic growth, using a variety of appropriate econometric methods. We find positive results for both OECD countries and Emerging Market Economies (EMEs), with some evidence for a larger effect for EMEs than OECD countries.
|Date of creation:||Dec 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Brunel University, Uxbridge, Middlesex UB8 3PH, UK|
When requesting a correction, please mention this item's handle: RePEc:bru:bruppp:04-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John.Hunter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.