The effects of population age on trade Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/g158bk93d

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  • This paper empirically examines the effects of population aging on international trade using a cross-country panel data set for a select group of 22 OECD countries. Other recent studies have examined the effects of population age on other economic variables such as growth, savings, and investment but none till now have considered age related effects on international trade. I use a simple linear empirical model to capture any age related effects on trade along with two different model specifications in this paper; one is a simple OLS and the other is a fixed effects linear trend adjusted OLS specification. The estimated results are then adjusted for heteroskedasticity and autocorrelation via the use of the Newey-West HAC estimator to account for problems common to cross-county panel data sets. I conclude that there is indeed, a positive and statistically significant (though not very robust relationship) between a country's population age and its export to GDP ratio. There are no statistically significant effects on other total trade, trade balance or import variables.
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