Impacts Of Elderly Population On The Technical Efficiency Of ASEAN

Jee, Kouk Hiong and Rossazana, Ab. Rahim (2023) Impacts Of Elderly Population On The Technical Efficiency Of ASEAN. In: BORNEO BUSINESS RESEARCH CONFERENCE (BRRC 2023), 23 August 2023, Raia Hotel Convention Centre, Kuching.

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Abstract

ASEAN consistently suffer a subpar performance in terms of productivity growth compare to other countries in Asia since 1987 whereby it’s productivity growth was at least 0.60 times lower than Japan, Pakistan, China, Taiwan, Korea, Hong Kong and India over 1987-2019. It is an economical issue for ASEAN that required root cause investigation. Hence, a study was carried out to investigate the impacts of elderly population on the technical efficiency of ASEAN over the period of 1990-2019. By using Stochastic Frontier Approach, the estimated technical efficiency for ASEAN collectively reached 0.7398 whereby Myanmar is the highest and Lao PDR in lowest position over the period of 1990-2019. On top of that, the linear regression analysis that carried out also empirically proved that elderly population proxied by population age 65 and above as a percentage of the total population negatively and significantly influences the technical efficiency of ASEAN. In depth, 1% increment in terms of population age 65 and above as a percentage of the total population will decrease the technical efficiency of ASEAN as much as 3.4%. Surprisingly, crude death rate is significantly and positively influences the technical efficiency of ASEAN. It depicted that the growth of population may not able to be transformed as the skilled workers in ASEAN. While labor force participation of the elderly is a current trend not only globally but also in ASEAN, the member states of ASEAN particularly Brunei and Myanmar are suggested to carry out more policies to improve the productivity among the elderly labor. For the example, providing more ICT skill training for the elderly labor as well as job reallocation for the elderly based on their physical ability.

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