Besides in labor input. Lack of labor

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Besides the social impact of
depopulation, rapid population decline influenced the economic growth. In the
economic growth model, the two major factors are population (labor investment)
and capital investment. In order to economic growth is said to be labor input,
capital input, and total factor productivity. The declining population directly
leads to a decrease in labor input. Lack of labor in the market the result will
market contraction and lower productively. Productivity, that is the ability to
create goods and services. There are companies that are already struggling to
adopt young people, shortage of productive labor forces the business and
enterprise seems to decrees, which directly affects the country`s economy. Similarly,
the declining population will also affect capital input. As the aging
progresses, the number of young people saving in preparation for the future
decreases, the proportion of elderly people who live by withdrawing past
savings increases then savings of peoples decreases. As a result, the
investments also decrease.

is a strong correlation between population and GDP (Gross Domestic Product). If
the production age population declines, it is seen that economic size, labor
market, and GDP will 

Categories: Investment


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