An Analysis Of The Savings Effect Of The Growth Of Life Expectancy And The Change Of Population Structure And Its Enlightenment To China

The world’s population is experiencing a rapid aging process, which will have animportant impact on the socio-economic aspects, especiallythe savings rate. Theconduction through the savings rate of population aging’ssaving effect will affect theentire economy.There are already many scholars studied the relationship betweenpopulation aging and the savings rate, but in previous research, people focus on thestudy of the savings effect of change, while in fact, an important reason of populationaging is that people are expected to increased, which will also have an importantimpression on savings rate. In order to investigate the savings effect of populationaging more fully, we should consider the impact of both demographic structure andlife expectancyon savings rate.In this paper, by adding life expectancy in the life cycle savings model, it revealsthe relationship between life expectancy and the savings rate: an increase the lifeexpectancy will increase each age’s savings rate. Then taking advantage of94years ofcross-country1960-2010panel data, we demonstrate and test life expectancy andpopulation structures’ impact on the savings rate. We concluded that the elderlydependency ratio and the youth dependency ratio will inhibit the savings rate, whilethe life expectancy will play a positive role. Further, combined with the analysis andcomparison of Japanese policy facing population aging, we put forward policyrecommendations in seven.The following text is divided into five parts:The first part is an introduction. Describing the background, purpose andsignificance of the study. Introduce the content and research methods of this paper.The second part is a literature review. It’s a systematic review and introduction ofsavings effect of changes in population structure and increase in life expectancy and acombination of both changes in population structure and increase in life expectancy.The third part is the theoretical model analysis. Firstly, it’s a brief introduction ofthe life cycle savings model. After that, we add a variable of life expectancy base on it,in order to further analyze the combined effects of life expectancy and populationstructure on the savings rate.The fourth part is the empirical analysis. Using94years of cross-country1960-2010panel data to test theoretical models and found that life expectancy was positively correlated with the savings rate, while youth dependency ratio and theelderly dependency ratio have a negative correlation with the savings rate.The fifthpart isthe policy proposal for the response to the population aging of ourcountry. Basing on conclusions of empirical analysis, we analyzed the currentsituation of China’s population aging. Combined with thelateralcomparative study ofJapan, we made the following policy recommendationswe made the followingpolicy recommendations: improve relevant laws and regulations, develop the theorieson aging research policy;stratifiedgovernancepensions,mandatoryfeesocial insurance;considering the current situation, suspend the delay of retirement age;adjustmentoffertility policy,timelyencourage fertility.The sixth part is the conclusion and outlook. Summarizing the content andshortcomings of this paper and proposing directions for future research.