Subject. The impact of population aging on labor productivity growth in Japanese prefectures. Objectives. Identification of the nature of the impact of demographic aging on the dynamics of labor productivity, as well as verification of the presence of conditional convergence and spatial interconnectedness between regions. Methods. The theoretical basis of the work is the extended Solow model and the concept of conditional convergence. The empirical analysis is based on panel data for 47 prefectures of Japan for 2012-2021. The proportion of the population aged 65 and over and the demographic burden of the elderly are used to assess aging. The spatial error model (SEM) with two-way fixed effects is used as the basic specification. Results. The theoretical basis of the work is the extended Solow model and the concept of conditional convergence. The empirical analysis is based on panel data for 47 prefectures of Japan for 2012-2021. The proportion of the population aged 65 and over and the demographic burden of the elderly are used to assess aging. The spatial error model (SEM) with two-way fixed effects is used as the basic specification. It has been established that both indicators of aging are statistically significantly and positively associated with an increase in labor productivity. The conditional convergence of regions and significant spatial interconnectedness in productivity dynamics are also revealed. Conclusions. The aging of the population in modern Japan should be understood not just as a demographic problem, but as an important factor in the restructuring of the regional economy.
Keywords: population aging, labor productivity, economic growth, spatial error model, prefectures of Japan
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