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Determinants of Female Fertility in Taiwan, 1966-2001: Empirical Evidence from Cointegration and Variance Decomposition Analysis

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  • Paresh Kumar Narayan

Abstract

This study investigates the determinants of the fertility rate in Taiwan over the period 1966-2001. Consistent with theory, the key explanatory variables in Taiwan's fertility model are real income, infant mortality rate, female education and female labor force participation rate. The test for cointegration is based on the recently developed bounds testing procedure while the long-run and short-run elasticities are based on the autoregressive distributed lag model. Among our key results, female education and female labor force participation rate are found to be the key determinants of fertility in Taiwan in the long run. The variance decom-position analysis indicates that in the long run approximately 45percent of the variation in fertility is explained by the combined impact of female labor force participation, mortality and income, implying that socioeconomic development played an important role in the fertility transition in Taiwan. This result is consistent with the traditional structural hypothesis. Copyright 2006 East Asian Economic Association and Blackwell Publishing Ltd..

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Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 20 (2006)
Issue (Month): 4 (December)
Pages: 393-407

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Handle: RePEc:bla:asiaec:v:20:y:2006:i:4:p:393-407

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Cited by:
  1. Hafner, Kurt A. & Mayer-Foulkes, David, 2013. "Fertility, economic growth, and human development causal determinants of the developed lifestyle," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 107-120.
  2. Justin Doran, 2012. "An analysis of the interdependence of demographic factors, labour effort and economic growth in Ireland," International Journal of Social Economics, Emerald Group Publishing, vol. 39(3), pages 221-237, March.

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