A Comparative Study Of The Impact Of Population Aging On The Economy Between China And Japan

Population is a crucial factor of economic growth.The shift of population in size and age structure will have a direct and far-reaching impact on the economy.So far,population aging has become a ubiquitous problem in many countries,which will have a great influence on economic growth in some aspects,causing the shortage of labor supply,pulling down the domestic savings,shifting the consumption structure,and increasing the social security expenditure,etc.Japan,though,as we all know,is a developed country,it also has a severest aging problem in the world.At the time of 1970 s,Japan became an aging society.And by 1995,the total number of the elderly over 65 years old in Japan had accounted for 14% of the total population,and by 2007,the proportion went up to 21%,and aging process still kept deepening.Resulting from the serious aging problem,troubles,like the shortage of labor supply,the decline of productivity,and an increasing social security expenditure in medical care and retired allowance,has held back Japan's economy to a great extent.Moreover,China,as the second largest economy in the world,is in a dilemma of serious population aging condition as well.In 2000,China became an aging society.By 2018,the proportion of population group aged no less than 60 is 17.9% of the whole,and 11.9% of that is over 65 in China.The population aging has caused adverse effects on China's economy,like an increasing dependency ratio,an uprising pension cost and a decreasing labor supply,which have obstructed the growth of China's economy.However,entering the aging society earlier,after over half a century,Japan has gained a lot of experience in solving the aging problem,and has established a relatively complete anti-aging system.What's more,China,as a neighboring country of Japan across the sea,has a tight relationship in history and culture,and shares similar customs,ideas and lifestyles.Therefore,it is inspirational and significant for China to study of how Japan solves aging problem.Based on the background above,this paper first combs the theory of population economy and economic growth,which lays a theoretical foundation for further analysis of the role of aging on the economy;secondly,through comparative analysis,this paper reviews the historical evolution of population in China and Japan,then summarizes the current situation and characteristics of population in both countries,and gets different effects of aging from the perspective of labor supply,consumption,savings,and current account.Furthermore,on the basis of the previous content,this paper makes an in-depth analysis and summarizes the similarities and differences that aging problem gives to China and Japan,objectively analyzing the shortcomings of China's response to the aging problem,as well as the advantages of Japanese one's.Finally,inspired by the Japanese mode and combined with China's reality,this paper puts forward five strategies to cope with the aging problem: establishing a collaborative support system;further optimizing the allocation mechanism of labor resources;improving the pension security system and medical service system;further lifting the birth rate;adapting to the changes of population structure and changing the economic development mode.