Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries

Li, H.B., Zhang, J. and Zhang, J.S. (2007) Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries. Journal of Development Economics, 84 1: 138-154. doi:10.1016/j.jdeveco.2006.10.002

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Author Li, H.B.
Zhang, J.
Zhang, J.S.
Title Effects of longevity and dependency rates on saving and growth: Evidence from a panel of cross countries
Journal name Journal of Development Economics   Check publisher's open access policy
ISSN 0304-3878
Publication date 2007
Year available 2007
Sub-type Article (original research)
DOI 10.1016/j.jdeveco.2006.10.002
Volume 84
Issue 1
Start page 138
End page 154
Total pages 17
Editor Rosenzweig, M.R.
Place of publication Amsterdam
Publisher Elsevier Science BV
Collection year 2008
Language eng
Subject C1
Abstract While earlier empirical studies found a negative saving effect of old-age dependency rates without considering longevity, recent studies have found that longevity has a positive effect on growth without considering old-age dependency rates. In this paper, we first justify the related yet independent roles of longevity and old-age dependency rates in determining saving and growth by using a growth model that encompasses both neoclassical and endogenous growth models as special cases. Using panel data from a recent World Bank data set, we then find that the longevity effect is positive and the dependency effect is negative in savings and investment regressions. The estimates indicate that the differences in the demographic variables across countries or over time can well explain the differences in aggregate savings rates. We also find that both population age structure and life expectancy are important contributing factors to growth. (C) 2006 Elsevier B.V. All rights reserved.
Keyword Economics
longevity
old-age dependency
saving
growth
Economic-growth
Age Structure
Demographic-change
Population
Asia
Q-Index Code C1
Q-Index Status Confirmed Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2008 Higher Education Research Data Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 18 times in Thomson Reuters Web of Science Article | Citations
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Created: Mon, 18 Feb 2008, 17:29:42 EST