Population Aging,Division Of Labor And Economic Growth

Since the beginning of the 21 st century,China's aging population has experienced a rapid increase from its birth.The economic society is about to enter the situation of being rich and old,and it will bring severe challenges to the sustainable development of China's economy.Whether the aging of the population promotes economic growth or not,scholars at home and abroad are still in a state of controversy,and there is no unified conclusion.In view of the current research situation,the thesis will use the emerging classical economic theory to construct a general equilibrium analysis framework based on the CES production function,and will derive the influence mechanism of population aging on economic growth from the theoretical model.The empirical analysis was carried out using national panel data from 2000 to2016 in western developed countries including Japan and South Korea.From the theoretical derivation,we found that when the population ages,there will be two production choices in the economy and society.Firstly,in order to maintain diversified consumption,we have to sacrifice the specialization of production;secondly,we must sacrifice the diversification of consumption to ensure the specialization of production.It's that both the diversification of consumption and the specialization of production cannot be achieved in same time.But in fact,when aging occurs,the economy and society will spontaneously choose to maintain the diversification of consumption instead of the specialization of production.The results of general equilibrium analysis show that there are significant differences in labor productivity,specialization level and per capital real income before and after population aging.That is,the dynamic productivity,specialization level and per capital real income before the aging population are greater than after aging indeed.This is because when the population ages,the labor supply is insufficient,and people will still choose the diversification of consumption to make the result of the division of labor.However,its specific value is determined by transaction efficiency and fixed learning cost,so we can weaken the impact of population aging on economic growth by improving transaction efficiency and reducing fixed learning costs.Further,the empirical analysis also shows that population aging has a significant negative impact on economic growth,while transaction efficiency,human capital investment,labor participation rate and external fixed investment have a significant positive impact on economic growth.In the last part of the article,we summarize the research conclusions and give corresponding policy recommendations.