The influence of the demographic structure on the economic growth of Ukraine

Abstract

The national economy is closely related to the demographic structure of the society. Therefore, in the face of demographic changes, it is necessary to assess the influence of these changes on economic growth. This article presents an estimation of the impact that the future changes in the demographic structure will have on the economic growth of Ukraine, represented by the rate of changes in GDP per capita. The decomposition of GDP per capita and making the components of this decomposition dependent on the demographic structure allowed an empirical analysis, which used a variety of econometric and statistical techniques and was based on a population forecast prepared by the Ptoukha Institute for Demography and Social Studies of the National Academy of Sciences of Ukraine. As a result, it was determined that the impact of the changes in the demographic structure on Ukraine’s long-term economic growth will be highly diverse over the studied period (until 2060). However, considering the entire period of the analysis, the negative effects of the changes in the demographic structure on the economy will be counterbalanced by the positive effects of these changes.