The Effects of Population Structure on Economic Growth in Iran: Structural Time Series Approach

Economic growth is one of the most fascinating subjects in economics that has attracted the attention of economists all across the world. One of the main important factors of economic growth is age structure. Therefore, the present paper aims to study the impact of age structure on economic growth in Iran during 1975 and 2012. For this purpose, the structural time series approach was used in the study. Findings indicate that the population dependency ratio has a significant and negative impact on economic growth while the growth of gross fixed capital formation and life expectancy have a significant and positive impact on economic growth. Finally, the estimated unobserved factors as the index of technology and other institutional variables that affect economic growth change with economic growth. This indicates the importance of institutional variables on the formation of economic growth in Iran