Aid and Fertility: What Does the Cross-Country Evidence Show?
AbstractThis paper examines the effects of foreign aid on fertility rates in recipient countries using Rajan and Subramanian’s (2008) cross-sectional and panel methods. Our cross-section results suggest that foreign aid has a positive effect on fertility. Interestingly, social sector aid (but not economic aid) is responsible for this demographic effect. The panel evidence confirms the positive effect of foreign aid on total fertility rates, and that social aid is more relevant than economic aid. Given that the literature has found no robust relationship between foreign aid and economic growth, our findings raise the possibility of an aid-induced population poverty trap.
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Bibliographic InfoPaper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2011024.
Length: 20 pages
Date of creation: Dec 2011
Date of revision:
foreign aid; population growth; Malthusian traps;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-DEM-2011-12-19 (Demographic Economics)
- NEP-DEV-2011-12-19 (Development)
- NEP-FDG-2011-12-19 (Financial Development & Growth)
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