Page 49 - 2022 Abstract Book RUICHSS_2022_11_17 after conference

University of Ruhuna ISSN: 2706-0063
Matara, Sri Lanka

Causality between Elderly Population and Economic Growth
in Selected South Asian Countries

Thaveesha Jayawardhana, Sachini Anuththara, Thamasha Nimnadi, Ridhmi
Karadanaarachchi, Ruwan Jayathilaka and Kethaka Galappaththi
thaveesha.jaya@gmail.com

The research has been polarized on the relationship between the ageing population
and economic expansion. The people and their growth have a stimulating effect on
economic development regardless of the rate of economic growth. On the other hand,
economic growth might lead to longevity of life leading to higher growth of elderly
population. Based on annual data from 1961 to 2021, this study investigates the
relationship between the elderly population and economic growth in five South Asian
nations, namely Bangladesh. India, Nepal, Pakistan, Sri Lanka. The findings from the
Granger causality test indicate that Pakistan, Bangladesh, and India have a
unidirectional (For India, economic growth granger cause to the elderly population
growth rate and for Pakistan and Bangladesh, elderly population growth rate granger
cause to the economic growth) and Nepal has bidirectional causality between two
variables, whilst Sri Lanka has no causality between them. The key conclusions will
support effective decision-making by governments, policymakers, and foreign
investors on pension plans, health care plans, insurance, etc.

Keywords: Elderly Population, Economic Growth, Granger Causality, Asia, Vector
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