Demographic Trends and International Capital Flows in an Integrated World

Luca Marchiori ()

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: This paper examines the impact of projected demographic trends on international capital flows. The analysis builds upon a ten-region overlapping generations’model of the world economy where capital is mobile across regions. Results show that, over the first half of the century, emerging regions will finance the demand of capital coming from the developed world where population aging is relatively advanced. In particular, the findings suggest that in the coming decades China will be the world’s main creditor region. However, in the second half of the century, India will take over this leading position because of the predicted decline in the Chinese labor force. An additional analysis demonstrates that the economic consequences of demographic changes depend on the degree of capital market integration between regions.

Keywords: Demographic trends; capital flows; overlapping generations; general equilibrium; multi-regional model (search for similar items in EconPapers)
JEL-codes: C68 D91 F21 J11 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-age, nep-dge, nep-ifn and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://wwwfr.uni.lu/content/download/35522/427398/ ... tegrated%20world.pdf (application/pdf)

Related works:
Journal Article: Demographic trends and international capital flows in an integrated world (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:11-05

Access Statistics for this paper

More papers in DEM Discussion Paper Series from Department of Economics at the University of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Marina Legrand ().