The Economic Consequences of Demographic Change in East Asia

The reform in Asian financial sectors---especially in banking and stock markets---has been remarkable since the currency crisis of 1997-98. Bringing together authors from various East Asian and Pacific nation, this volume examines the institutional factors influencing finacial innovation, the consequences of financial development, widespread consolidation occurring through mergers and acquisitions, and the implementation of policy reform.

This volume offers comparative analysis from twelve countries and examines the issue of age in the labor force. Contributors analyze the relationship between incentives to retire and the proportion of older persons in the workforce, the effects that reforming social security would have on the employment rates of older workers, and how extending labor force participation will affect program costs. Dispelling the myth that employing older workers takes jobs away from the young, this timely volume challenges existing assumptions about the relationship between old and young people in the workforce.

In less than three decades, China has grown from playing a negligible role in world trade to being one of the world's largest exporters, a substantial importer of raw materials, intermediate outputs, and other goods, and both a recipient and source of foreign investment. This volume undertakes an empirical investigation of the effects of China's new status, providing detailed analyses of the microstructure of trade, the macroeconomic implication, sector-level issues, and foreign direct investment. Careful examination of micro data in light of established economic theories clarifies a number of misconceptions, overturns some conventional wisdom, and documents data patterns that enhance our understanding of issues related to China's trade.

Almost all industrial countries have recently experienced dramatic decreases in both fertility and mortality rates. This situation has led to aging societies with economies that suffer from both a decline in the working population and a rise in fiscal deficits linked to increased government spending. East Asia exemplifies these trends, and this volume offers an in-depth look at how long-term demographic transitions have taken shape there and how they have affected the economy in the region.

The Economic Consequences of Demographic Change in East Asia assembles a group of experts to explore such topics as comparative demographic change, population aging, the rising cost of health care, and specific policy concerns in individual countries. The volume provides an overview of economic growth in East Asia as well as more specific studies on Japan, Korea, China, and Hong Kong. Offering important insights into the causes and consequences of this transition, this book will benefit students, researchers, and policy makers focused on East Asia as well as anyone concerned with similar trends elsewhere in the world.

Takatoshi Ito is professor in the graduate schools of public policy and of economics at the University of Tokyo and a research associate of the National Bureau of Economic Research.
Andrew K. Rose is the B.T. Rocca Professor of Economic Analysis and Policy at the Haas School of Business, University of California, Berkeley, and a research associate of the NBER.