Impact of the Extent of Population Aging on Economic Development and Countermeasure

With the comprehensive prosperity and development of human society, human life expectancy shows a rising trend, fertility rate shows a declining trend, the world is facing a severe problem of population aging, the ensuing economic impact is the focus we need to pay attention to. Taking various countries and regions in the world from 1960 to 2019 as samples, this paper conducted an empirical test on transnational panel data and found that old age dependency would significantly hinder economic growth. The conclusion remained valid after the robustness test of replacing explanatory variables, instrumental variable method and changing sample interval. Further study found that old-age dependency ratio will also significantly reduce consumption expenditure. Based on this, this paper gets inspiration and puts forward corresponding policy suggestions to mitigate the adverse impact of population aging on China's social and economic development.