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

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  • Miao Wang
  • Hong Zhuang

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.

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  • Miao Wang & Hong Zhuang, 2019. "How Does Foreign Aid Affect Total Fertility Rate? Panel Data Evidence," International Economic Journal, Taylor & Francis Journals, vol. 33(4), pages 605-619, October.
    • Handle: RePEc:taf:intecj:v:33:y:2019:i:4:p:605-619
    DOI: 10.1080/10168737.2019.1620306
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    Cited by:

    1. Thanh Dinh Su & Canh Phuc Nguyen, 2022. "Foreign financial flows, human capital and economic growth in African developing countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3010-3031, July.

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