A Study of the Impact of Population Ageing on Innovative Fiscal Expenditures

After population aging and innovative development became a hot topic in society, it is crucial to explore the impact of population aging on innovative financial expenditures in China. In this paper, we use a one-dimensional linear regression model to explore the influence of population aging on innovative fiscal expenditures in China based on Chinese provincial-level panel data from 2007-2023, and further use heterogeneity analysis to conduct group regression through different regional and temporal perspectives. The findings of this paper are derived: (1) Population ageing has a positive impact on innovative fiscal spending. (2) Population aging in China has the strongest driving effect on innovative fiscal expenditures in the central region, followed by the east, and the smallest in the west, while it has a negative effect on innovative fiscal expenditures in the northeast. (3) The impact of population aging on innovative fiscal expenditures in China is positive during the period 2013-2023, while it is insignificant during the period 2007-2012. This paper has three policy recommendations based on the outputs of the research: (1) Increase innovative fiscal spending on the senior care industry. (2) Promote the development of ageing-friendly in various industries. (3) Improving the old-age security system and releasing more age-appropriate labor.