Investment for the demographic window in Latin America

Arbeitspapier

This paper studies the behavior of investment during demographic transitions. In particular, I focus on the period where the working age to population ratio reaches its maximum, namely the demographic window. I document that in Europe, Asia, and Oceania investment rates are higher 15 years before and during the window than in other periods, whereas in Latin America they are lower. To understand the relation between investment and a demographic window, I build an overlapping generations model with demographic change and variable degree of financial openness. Within this framework, I conduct several exercises and counterfactuals involving potential drivers of the investment behavior. I find that the demographic behavior in conjunction with the region-specific financial openness can explain the main pattern of investment for the demographic window in Latin America vis-a-vis Europe and Asia.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 2019-15

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Investment; Capital; Intangible Capital; Capacity ; Demographic Economics: General ; Economywide Country Studies: Latin America; Caribbean ; Open Economy Macroeconomics
• Subject: Investment ; Demographic Window ; Latin America

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rodriguez, Maria Jose
• Event: Veröffentlichung
• (who): Banco de México
• (where): Ciudad de México
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/240683
• Last update: 10.03.2025, 11:44 AM CET