Abstract

The data from the seventh population census in 2020 shows that China's population is aging further, and the long-term and rapid aging phenomenon will have a huge impact on China's economy. Therefore, the extensive repercussions that demographic expansion and the aging populace exert on economic proliferation have arouse wide concern. This paper will use theoretical analysis to explore the influence of the aging demographic on economic growth from the four aspects of effective labor supply, savings and investment, enterprise innovation, and social security, and put forward some policy suggestions to deal with these shocks. The research finds that population aging will affect the effective labor supply and reduce the savings rate. The effect of enterprise innovation will be weakened in promoting population aging and the social security system: the pension insurance system and the medical insurance system will be seriously influenced. Therefore, this paper summarizes how population aging has some influence on China's economic growth from the above four perspectives, and puts forward some suggestions in order to alleviate the bad impact of population aging on economic development. It is suggested to improve the family planning policy, delay retirement, strengthen basic education, encourage technological innovation in enterprises to alleviate the problem of an insufficiently effective labor force, and establish a fully covered pension system to ensure the elder people lead a high-quality life.

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