Proceedings of the 33rd International Academic Conference, Vienna

CONTRIBUTION OF INCREASED LIFE EXPECTANCY TO ECONOMIC GROWTH: EVIDENCE FROM CEE COUNTRIES

GINDRUTE KASNAUSKIENE, KAROL MICHNEVICH

Abstract:

Population ageing in a backdrop of growing average life expectancy can be seen in many advanced economies, but the rapid pace of these demographic changes in Central and Eastern Europe (CEE) makes it a pressing matter for the region. We investigate these two phenomenon and compare results with prior research to determine their separate and combined effect on output growth in a panel regression model using Eurostat data for the period 1996 to 2013. Our findings point to both life expectancy and population ageing exerting a statistically significant, overlapping effect on real output. The conclusions of our research demonstrate the utility of augmenting macroeconomic models with a demographics-sensitive component.

Keywords: demographics, life expectancy, population ageing, economic growth, CEE countries

DOI: 10.20472/IAC.2017.33.031

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