Abstract
Population aging is identified as one of the global social issue. What does effect to economic growth when the birth rate of the world is getting lower? What is the mechanism between population aging and economic growth? This research follows Prettner (2013) framework with population aging and semi-endogenous model to analyze the effect between population aging, innovation and economic growth. The analysis covers countries from 1996 to 2014 and is based on the estimation of growth equation using two step system GMM estimator. The empirical result is that birth rate significantly and positively impacts on the economic growth rate and the output of patents, but the high enough labor participation rate and employment ratio can reversal the negative impact between population aging and economic growth. Moreover, the increasing of patents can slow down the negative impact between population aging and economic growth rate as well.