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Fertility and the real exchange rate

Andrew Rose (), Saktiandi Supaat and Jacob Braude

Canadian Journal of Economics, 2009, vol. 42, issue 2, 496-518

Abstract: We use a quinquennial data set covering 87 countries between 1975 and 2005 to investigate empirically the relationship between fertility and the real effective exchange rate. Theoretically, a country experiencing a decline in its fertility rate can be expected to experience a real depreciation. We test and confirm this hypothesis, controlling for a number of other potential determinants. We find a statistically significant and robust link between fertility and the exchange rate. Our point-estimate is that a decline in the fertility rate of one child per woman is associated with a depreciation of approximately 15% in the real effective exchange rate.

JEL-codes: F32 J13 (search for similar items in EconPapers)
Date: 2009
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Journal Article: Fertility and the real exchange rate (2009) Downloads
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