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The Impact of Labor Force Growth on the Economic Growth in East Asian Countries

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DOI: 10.23977/pree.2024.050201 | Downloads: 10 | Views: 93

Author(s)

Yuzhao Jin 1

Affiliation(s)

1 Dornsife College of Letters, Arts and Sciences, University of Southern California, Los Angeles, California, USA

Corresponding Author

Yuzhao Jin

ABSTRACT

This study investigates the impact of demographic and labor force composition changes on economic growth in China, Japan, and South Korea from 1990 to 2021. Utilizing multivariate regression models, the research examines how factors such as aging populations, fertility rates, mortality rates, unemployment, and labor force participation influence GDP growth in these countries. Data is sourced from reputable organizations like FRED, the World Bank, and national statistical bureaus, ensuring robust and consistent analysis. Our findings reveal that in China, GDP growth is significantly influenced by research and development (R&D) investments, the percentage of the population aged 65 and above, government spending, and the COVID-19 pandemic. For Japan, key factors include fertility rates, mortality rates, unemployment rates, the aging population, and savings rates. In South Korea, GDP growth is primarily affected by mortality rates, unemployment rates, and labor force participation rates. The study underscores the complex interplay between demographic factors and economic growth, highlighting the need for effective policy measures to address labor force decline and population aging. In China, substantial R&D investment boosts economic growth, while an aging population and increased government spending pose challenges. Japan's high savings rates and low unemployment contribute positively to GDP growth, though its aging population remains a concern. South Korea's economic growth benefits from industrial adaptation to an aging population, yet struggles with high unemployment and declining labor force participation. These findings emphasize the importance of tailored policy interventions to sustain economic growth in the face of demographic changes. Policymakers in China, Japan, and South Korea must balance labor welfare, improve job markets, and leverage demographic trends to mitigate the economic impacts of aging populations and other labor force challenges.

KEYWORDS

GDP, Economic Growth, labor force, China, Japan, South Korea

CITE THIS PAPER

Yuzhao Jin, The Impact of Labor Force Growth on the Economic Growth in East Asian Countries. Population, Resources & Environmental Economics (2024) Vol. 5: 1-9. DOI: http://dx.doi.org/10.23977/pree.2024.050201.

REFERENCES

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[2] Furuoka, F. (2018). Is population beneficial to economic growth? An empirical study of China. Quality & Quantity, 52(1), 209–225. https://doi.org/10.1007/s11135-016-0463-6
[3] Liu, Y., Chen, L., Lv, L., & Failler, P. (2023). The impact of population aging on economic growth: a case study on China. AIMS Mathematics, 8(5), 10468–10485. 
[4] Vandenbroucke, G. (2022). Mortality and economic growth. Economic Research - Federal Reserve Bank of St. Louis. https://research.stlouisfed.org/publications/economic-synopses/2022/11/23/mortality-and-economic-growth

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