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

David Cuberes () and Kevin Tsui ()
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Kevin Tsui: The John E. Walker Department of Economics, Clemson University

No 2011024, Working Papers from The University of Sheffield, Department of Economics

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.

Keywords: foreign aid; population growth; Malthusian traps (search for similar items in EconPapers)
JEL-codes: F35 I31 J11 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2011-12
New Economics Papers: this item is included in nep-dem, nep-dev and nep-fdg
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Downloads: (external link) First version, 2011 (application/pdf)

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