The Impact Of Population Aging On Japan's Economic Growth

In 21st century,more and more countries have stepped into an aging society.Population aging has gradually become a global issue,which has changed from a purely demographic problem to a comprehensive social issue involving economic,politic,culture,resources and other cross-cutting fields,leading to labor shortage,low social productivity,declining saving rates,soaring social security costs.In this viewpoint,the government's fiscal deficits are increasingly impacting economic growth at the national level.China has become the country with the largest population and the largest number of elderly in the world.The proportion of citizen over 65 years old accounting for total population has been rising in many years.However,lacking attention to the aging issue causes many defects in related policy researches and coping strategies.Japan,as a country approaching to the aging population earlier,has formed a mature system to deal with the problem of population aging.To some extent,a series of countermeasures have alleviated the difficulties brought by population aging to social and economic development.The impact of population aging on Japan's economic growth is complicated.With qualitative and quantitative analysis,this paper adopts demographic economics and economic growth theory to analyze the evolution process,current characteristics,development trends,and Japan's population aging.In this way,the impact of Japan's economic growth through labor supply,consumption and savings,social security systems,and fiscal expenditures could be explicated.Based on data from 1971 to 2015,this paper uses empirical methods to study the Japan's population aging's impact on economic growth,combining with variables such as savings,social security,public financial expenditure and private consumption.The results show that the aging population will have a negative impact on Japan's economic development through the path of savings,social security and government expenditure,but it will also in return promote the Japan's economic development through the influence of private consumption.According to the above analysis results,the paper finally focuses on the policy level and sums up Japan's response to the aging process and get the relevant inspiration.In summary,this paper considers that a series of measures in Japan can be used for reference,but Chinese government must take national conditions into consideration when adopt policies to mitigate population aging.Because Japan's response to the aging process is not easy,analyzing failures and avoiding repeating Japans' past mistakes is really of practical significance for studying China's economic growth.