Study on the Influence of Population Aging on China's Economic Development Based on Individual Fixed Effect Model

In recent years, the aging process of China's population has been accelerating, which has a series of impacts on China's economic development. This paper first analyzes the positive and negative effects of population aging on China from the perspective of theory. Then based on the panel data of 31 provinces in China from 1998 to 2017, this paper establishes individual fixed effect model through unit root test, cointegration test, F-test and Hausman test. The result of the model estimation is that the aging of population can promote the economic development of China and the elasticity of GDP per capita to the ratio of the elderly population is 0.05. According to this analysis, this paper provides some policy suggestions for China's future economic development.