A Study On The Impact Of Population Aging On The Economic Growth

It is well known that over the next several decades, the proportion of the retirement will increase dramatically in the world and this century will be an aging one. Using the data of Wuhan, this paper investigates how population aging affects economic growth in a general equilibrium model of life cycle savings combined with endogenous growth. It shows that population aging is not necessarily a negative factor for growth.Firstly, this paper elaborate that it is a important phenomenon by aging data of Wuhan. Then it introduce some theories and researches at home and abroad on population aging. Let readers know basic theories on it.Secondly, it is based on the data of Wuhan between 1978-2005, we analyze that the changes by aging, such as savings and consuming. Take Solow model as the basic, establish a general equilibrium model which contains the aging population factor, using mathematical derivation to prove the impact of the population aging on Wuhan, educing that the aging of population have a double effect on economic growth and the ultimate effect depends on the the net value of the positive and negative effects.Finally, we know aging of population can bring double effect on economics, and there some suggestions against Wuhan aging population. This is a favorable opportunity to develop before coming negative effect.