Technologies and aging population in South Korea and Japan

AbstractThis thesis aimed to describe the impact of technological advancements on the unemployment rate, standard of living, and policy implementations in South Korea and Japan – countries with the ageing population. The dataset used in this thesis for South Korea and Japan is in the range between 1960 and 2018. The results from the stepwise regression analysis in the model [1] show the negative impact of R&D expenditures on the unemployment rate of both states. In contrast, ICT investments positively influence the unemployment rate in Japan and South Korea. Moreover, technological advancements demonstrated a much more strong effect on the unemployment rate in Japan compared to South Korea. Thus, a possible explanation for this paradox is provided.Model [2] shows the effect of technological advancements on the standard of living. Overall, R&D expenditures, ICT investments, and average years of schooling demonstrate a positive impact on HDI for both Japan and South Korea. However, life expectancy and openness to trade showed a negative effect on HDI. Possible explanations are be presented in the analytical part of the thesis.Overall, to partially solve the problem of the ageing population and avoid the problem of decline in the economic growth and number of citizens in South Korea and Japan following suggestions were presented: 1) increase the R&D expenditures and use robots at job positions with repetitive tasks with each year; 2) review the migration and retirement policies; 3) stimulation of the birth rate, and 4) improvement of architectural standards to make the life of the retirees – the largest age group in Japan and South Korea, more convenient.