TRANSFORMING CHINA'S DEMOGRAPHIC CHALLENGES: TECHNOLOGY, THE SILVER ECONOMY, AND SUSTAINABLE ECONOMIC GROWTH

Abstract

This rigorous study investigates the profound impact of rapid population aging on China’s economic growth, with a particular emphasis on the mitigating roles of technological innovation and the emerging silver economy. Utilizing a robust panel dataset spanning 31 Chinese provinces from 2005 to 2021, the research employs a fixed-effects regression model with three nested specifications to systematically evaluate these complex dynamics. The empirical results demonstrate that while an aging demographic significantly constrains per capita GDP by reducing the efficient labor supply and elevating dependency ratios, these negative macroeconomic effects are not absolute. Crucially, the targeted expansion of digital infrastructure and technological advancement substantially moderates this economic deceleration. Furthermore, the proactive development of the silver economy—specifically measured by enhanced elder-care capacity—serves as a positive catalyst for long-term regional economic resilience. Notably, aging-related fiscal burdens, such as pension expenditures, did not have severe adverse effects when adequately offset by targeted investments in the elder sector and robust local urbanization. Ultimately, these findings provide policymakers with actionable insights to transform demographic constraints into opportunities for sustainable economic growth through strategic digitalization and targeted expansions in the senior market.