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Aid and Fertility: What Does the Cross-Country Evidence Show?

Author

Listed:
  • David Cuberes

    (Department of Economics, The University of Sheffield)

  • Kevin Tsui

    (The John E. Walker Department of Economics, Clemson University)

Abstract

This 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.

Suggested Citation

  • David Cuberes & Kevin Tsui, 2011. "Aid and Fertility: What Does the Cross-Country Evidence Show?," Working Papers 2011024, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2011024
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2011_024.html
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    References listed on IDEAS

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    Cited by:

    1. Ahmad, Khalil & Ali, Amjad & Irfan Chani, Muhammad, 2014. "Does sector specific foreign aid matter for fertility? An empirical analysis form Pakistan," MPRA Paper 72851, University Library of Munich, Germany.
    2. Ahmad, Khalil & Ali , Amjad & Chani, Muhammd Irfan, 2014. "Does Foreign Aid to Social Sector Matter for Fertility Reduction? An Empirical Analysis for Pakistan," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(04), pages 65-76, December.

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    More about this item

    Keywords

    foreign aid; population growth; Malthusian traps;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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