How Does Foreign Aid Affect Total Fertility Rate? Panel Data Evidence

Document Type

Article

Language

eng

Publication Date

10-2019

Publisher

Taylor & Francis (Routledge)

Source Publication

International Economic Journal

Source ISSN

1016-8737

Abstract

We explore the relationship between aid and the total fertility rate in recipient countries, which is closely linked to the literature on aid and economic development. Using data on official development assistance in 86 developing countries over 1970–2015 and controlling for potential endogeneity issues, we find that foreign aid helps to lower the total fertility rate in recipient countries in general. In addition, our results suggest that development assistance is most effective in lower-income countries or countries with a lower level of human capital. We also observe considerable regional heterogeneities regarding the effect of aid on the total fertility rate.

Comments

International Economic Journal, Vol. 33, No. 4 (October 2019): 605-619. DOI.

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