Aging, Trade, and Migration

This study considers the role of demand-driven changes arising from population aging and how they affect the pattern of international trade as well as trade and immigration policy. An aging society can see a welfare-reducing reduction in its share...

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Bibliographic Details
Main Authors: Chisik, Richard, Onder, Harun, Qirjo, Dhimitri
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
WAR
Online Access:http://documents.worldbank.org/curated/en/2016/06/26543429/aging-trade-migration
http://hdl.handle.net/10986/24657
Description
Summary:This study considers the role of demand-driven changes arising from population aging and how they affect the pattern of international trade as well as trade and immigration policy. An aging society can see a welfare-reducing reduction in its share of manufacturing output and this reduction is magnified by a decrease in trade costs (an increase in globalization). Immigration can ameliorate this outcome if it is directed toward younger immigrants. A unilateral tariff increase can also reduce firm delocation from an aging country, however, a reciprocated tariff increase will unambiguously harm the country with the older average population.