Governance dimension of demographic change and technological advancement: The impact on economic growth

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Abstract

This research examines governance dimensions in the relationship between demographic change, technological advancement, and economic growth in Vietnam. Analyzing provincial data (2010–2019) by using generalized method of moments (GMM) estimation, we find that population aging positively impacts growth, challenging conventional demographic burden narratives (Bloom et al., 2003). Information and communication technology (ICT) adoption also contributes significantly to growth, extending previous findings on ICT’s economic role. However, we identify a critical negative interaction between aging and ICT, with a calculated threshold (age_ratio = 0.39) where ICT’s marginal impact becomes negative. These findings highlight both opportunities and challenges. The positive contribution of aging populations can be leveraged through governance mechanisms that capitalize on older workers’ productivity, aligning with the “silver dividend” concept (Park & Shin, 2023). The negative interaction between aging and technology adoption, however, necessitates targeted governance approaches to bridge intergenerational digital divides. We propose a multidimensional governance framework integrating demographic and technological policies through coordinated institutional structures and regulatory mechanisms. This approach can help Vietnam maximize benefits from both demographic transition and technological advancement by mitigating negative interaction effects as the population ages, thereby transforming demographic challenges into opportunities for sustainable growth.

Keywords: Demographic Transition, Economic Growth, Governance Dimension, ICT Adoption, Technological Advancement, Vietnam

Authors’ individual contribution: Conceptualization — N.M.L. and Q.A.N.; Methodology — N.M.L.; Validation —Q.A.N.; Writing — Review & Editing — Q.A.N. and N.M.L.; Visualization — N.M.L.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F43, J21, O47, P23, Q56

Received: 24.02.2025
Revised: 21.05.2025; 05.06.2025; 29.10.2025
Accepted: 24.11.2025
Published online: 26.11.2025

How to cite this paper: La, N. M., & Ngo, Q. A. (2025). Governance dimension of demographic change and technological advancement: The impact on economic growth [Special issue]. Journal of Governance and Regulation, 14(4), 317–331. https://doi.org/10.22495/jgrv14i4siart9