The impact of population ageing on international capital flows

Alexandre Narciso

MPRA Paper from University Library of Munich, Germany

Abstract: This paper is oriented to study the relationship between demographical factors and international capital flows. We analyse the impact of ageing on foreign direct investments (FDI) and foreign portfolio investments (FPI) on a bilateral level. Firstly we present a theoretical foundation of the relationship and then we test it by an empirical model. Theoretical foundations are based on the lifecycle hypothesis and overlapping generations model in a demographic context. The bilateral FDI and FPI are modelled by using fixed effects balanced panel data. The results suggest that the current and future age structure of the nation has significant effect on current international capital flows.

Keywords: International Capital Flows; Demography; Capital Mobility; FDI; Portfolio Investment (search for similar items in EconPapers)
JEL-codes: E00 F21 G15 J20 (search for similar items in EconPapers)
Date: 2010-11-04
New Economics Papers: this item is included in nep-age, nep-ifn and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26457

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