Does the pattern of age dependency matter in the promotion of financial development in an emerging economy?

In this study, we examine the financial development effect of population aging pattern in India. We examine the period 1960 to 2017 and analyse the various types of age dependency, which includes both old and young measures. By using structural VAR and ARDL techniques, we find that changes in young age dependency have a significant impact on changes in financial development in India while dependency by the old generation does not affect it. This study suggests that government and policymakers should protect the health, longevity and working conditions of young age people for the promotion of better financial development in India.