Claim Missing Document
Check
Articles

Found 1 Documents
Search

The Effect of Demographic Transition on Savings, Investment, and Capital Flows Sidabutar, Misnilawaty
Jurnal Ilmiah Administrasi Publik Vol. 6 No. 3 (2020): Jurnal ilmiah Administrasi Publik (JIAP)
Publisher : Badan Penerbitan Jurnal (BPJ) FIA-UB

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiap.2020.006.03.19

Abstract

The world population, as well as Indonesia, is aging and this demographic transition influences saving, investment, and capital flows. By looking at data from 1973 to 2017, this paper finds two things. First, the relationship between age groups and saving exhibits the inverted U-shape, but only old dependency impact negatively on investment based on 104 countries’ data. The capital flows represented by current account is deficit in the young dependency, but surplus in the old dependency. Second, demographic transition in Indonesia induced an increase in savings by a higher rate than investment and caused current account surplus in this period.