Demographic Change in Asia: The Impact on Optimal National Saving, Investment, and the Current Account
43 Pages Posted: 1 Feb 2006
Date Written: June 2000
This paper calculates the levels of optimal national saving, investment, and the current account balance for five Asian economies--Hong Kong SAR, Japan, Singapore, Malaysia, and the Philippines--for the period 1997-2050 using a simulation approach. These calculations show the sensitivity of results to changing demographic structures on employment participation, labor productivity; and consumption demands. In particular, the simulations reveal that variations in prospective demographic change across economies cause considerable variations in the patterns of optimal national saving rates.
Keywords: Current Account Balance, Savings, Investments, Aging, Demography
JEL Classification: E17, E21, J11, O21
Suggested Citation: Suggested Citation