The Impact of Population Aging on Economic Growth: Panel Data Evidence from Middle East Countries

Abstract

This study examines the relationship between population aging and economic growth in a panel of 10 selected Middle East countries for the period of 1996–2016. For this purpose, this study uses two different measures of population aging, namely population aged 65 and over and old dependency ratio, to investigate their impacts on economic growth. The study utilizes the three alternative models of static panel data comprised of the pooled ordinary least squares, random effects, and fixed effects. The results of the robust fixed effects model indicate that the population aged 65 and over and the old dependency ratio have a positive effect on economic growth. The finding supports the argument indicating that an aging population does not necessarily adversely affect economic growth in the developing countries as it does in the developed countries. Therefore, the elderly population is not a matter of concern for the Middle East and the mechanisms through which the effect can take place are savings behavior and human capital accumulation of the individuals.

Evaluation of the Effectiveness of Dynamic Neuromuscular Stability Exercises on Balance and Walking Function in the Elderly

“…Middle Eastern countries such as Iran and Turkey are among the countries where population growth is increasing rapidly. Given the increase in the prevalence of older people to 8.5% in 2018, forecasts show that aging in these areas is expanding rapidly [5]. With aging, changes occur in different body systems, and reports indicate that about 10% of people lose their independence in performing one or more daily activities by entering old age.…”