POTENTIAL EFFECTS OF DEMOGRAPHIC TRANSITION ON SUSTAINABLE COMPETITIVENESS

In the latest report of the World Economic Forum, it is pointed out that the global competitiveness index does not cover the analysis of the drivers of sustainable competitiveness, and that neglecting them can cause the vulnerability of economies to the negative effects of all future “shocks”. Potentially the most problematic ones are demographic questions, especially those concerning changes in the population age structure. Recognizing the importance of demographic trends for “shaping” future competitiveness is the key motive for writing this paper. The main objectives are twofold: a) to review theoretical considerations about the economic consequences of changes in the population age structure; and b) to analyze the characteristics of demographic transition in different regions, as well as its potential effects on the sustainable competitiveness of the economy.