The effects of the current population ageing phenomenon on European economic markets

Details

Supervisors

Iania, Leonardo

Faculty

Louvain School of Management

Degree label

Master [120] en ingénieur de gestion

Abstract

Developed countries, including European ones, have been facing a major demographic phenomenon for several years: the ageing of their populations. This phenomenon can mainly be explained by a fall in fertility rates leading to a slower population growth but also an increase in life expectancy. The numerous baby-boomers reaching retirement age also have a role to play in this situation. While the economic health of European countries has been causing concern lately, the question in the minds of many economists has been the following: is there an effective relationship between the current economic slowdown and the ageing population in developed countries? Even if there have been many efforts to find a simple answer to this issue, it is still a matter of debate. This thesis aims at contributing to the answer of this question by analysing demographic and economic data from a sample of nine countries located in the euro area. An econometric model is then used to find a possible relationship between different demographic factors characterizing population ageing and four main economic factors developed in this research: Gross Domestic Product (GDP) per capita growth, debt-to-GDP ratio, household saving rates and inflation. Overall, our results show evidence of a negative relationship between population ageing and economic factors.