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

Rajarshi Mitra and Md. Thasinul Abedin

Applied Economics Letters, 2021, vol. 28, issue 13, 1071-1075

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.

Date: 2021
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DOI: 10.1080/13504851.2020.1796914

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