In this report, a theoretical analysis is made on the macro-economic effects of pension and social security systems with the use of the endogenous growth model which including the public sector. In particular, analysis is made of how the public policy of distribution among generations through the pension system is related to the size of the government, productivity of the public sector, trend in savings and the economic growth rate. Furthermore, argument is made on the relation-ship between the pension system and growth disparity in the international context in consideration of the international capital movement that relates to private capital. The source of economic growth is composed of two effects. They are the inter-temporal inducement effect and the effect of transfer between generations. Capital movement has the effect to equalize growth rates in the international context due to the inter-temporal inducement effect. As a result, growth rates of both countries will be equalized under the pension system based on the pay-as-you-go formula. However, if marginal products of both countries are not identical under the pension system based on the funded formula, the growth rates of countries will not be equalized even if marginal products of private capital of both countries are equalized through the capital movement. From these results, it should be noted that the state of the pension system has a relationship with growth disparity in an international context.