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The Nexus Between Population Aging, International Trade, Foreign Direct Investment, and Economic Growth in G20 Countries: A Panel Vector Autoregressive Analysis
Abstract
This chapter examines the nexus between population aging, international trade, foreign direct investment, and economic growth in the G20 countries over 1994-2018 by using the panel vector autoregressive analysis approach. The G20 countries are considered locomotives of the world economy. Moreover, the G20 countries are also be regarded as the center of concentration of the interconnection of the above factors in connection with their economic significance and the population size. Thus, the analysis carried out within the framework of this chapter allows a better understanding the nature of the relationship between the examined variables. Moreover, using the impulse-response functions and the variance decomposition method, both the individual response of the variables to the shocks and the overall effect's magnitude are revealed.
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