Exploring the Relationship between population age structure and real exchange rate in OECD countries

This article examines the impact of population age structure on the real exchange rate. Data on a panel of 23 OECD countries over 1980-2009 period are used to estimate the empirical model. The results show that the shares of working age and old dependent population have significant appreciating effe...

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Bibliographic Details
Main Authors: Salim, Ruhul, Hassan, Kamrul
Other Authors: Ms. Nuha Jahan
Format: Conference Paper
Published: World Business Institute Australia 2012
Subjects:
Online Access:http://www.wbiconpro.com/201-Ruhul.pdf
http://hdl.handle.net/20.500.11937/9630
Description
Summary:This article examines the impact of population age structure on the real exchange rate. Data on a panel of 23 OECD countries over 1980-2009 period are used to estimate the empirical model. The results show that the shares of working age and old dependent population have significant appreciating effects while the share of young dependent has a significant depreciating effect on the real exchange rate. These results have important policy implications given the fact that population is aging in almost all the OECD economies these days.