The Effect of Demographic Trends on Competitiveness : A Methodological Experiment to Calculate the Loss of Human Capital

Abstract

The paper provides an overview of global demographic trends, including a brief description of the situation in the European Union and Hungary. It is important not only to monitor these processes, but also to identify their causes and consequences. This is also the focus of the study, which highlights the general link between current demographic trends and competitiveness. In particular, it focuses on measuring the loss of human capital due to emigration and attempts to quantify the loss of human capital in Hungary due to the youth and skills drain in the central regions. The study is a desk study based on published national and international sources (databases, studies). The authors of the study calculated the loss of human capital using a proprietary methodology in order to draw attention to the fact that in ageing societies, the competition for young and skilled workers intensifies and undermines the competitiveness and economic performance of the countries concerned.