The Impact of Population Aging on FDI Inflow in China—An Empirical Analysis Based on Provincial Panel Data

Abstract

With the increasingly serious situation of population aging in China, the impact of population aging cannot be ignored. This study analyzes the effect of population aging on the attraction of FDI inflows in China through the construction of an empirical model. The results show that there is a significant “inverted-U” relationship between population aging and FDI inflows, and aging negatively affects foreign investment inflows after crossing the aging inflection point. Based on the findings, this study proposes policy recommendations based on the quantity and quality of the labor force, such as improving the policy of gradual delayed retirement, improving the level of human capital, and promoting the regional mobility of the labor force, to provide feasible research ideas to enhance the attractiveness of FDI in regions with different levels of aging.