Declining fertility and financial development in high - income and low - income countries

In recent years, studies have found that financial development affect the rate of fertility worldwide. Available theories linking fertility and the banking sector have contended that when financial intermediaries develop the share of employment in the modern sector rises and the fertility rate falls...

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Main Authors:	Habibullah, M. S., Farzaneh, N., Haji Din, Badariah
Format:	Article
Language:	English
Published:	Serials Publications 2016
Online Access:	http://psasir.upm.edu.my/id/eprint/55428/ http://psasir.upm.edu.my/id/eprint/55428/1/Declining%20fertility%20and%20financial%20development%20in%20high-income%20and%20low-income%20countries.pdf

id	upm-55428
recordtype	eprints
spelling	upm-554282017-10-02T06:23:30Z http://psasir.upm.edu.my/id/eprint/55428/ Declining fertility and financial development in high - income and low - income countries Habibullah, M. S. Farzaneh, N. Haji Din, Badariah In recent years, studies have found that financial development affect the rate of fertility worldwide. Available theories linking fertility and the banking sector have contended that when financial intermediaries develop the share of employment in the modern sector rises and the fertility rate falls. With a well-developed financial system, firms will have easy access to the credit market, thus, enhanced production efficiency and firm can raise wages in the modern market. Families have a choice to move from the traditional market (high fertility rate, low wages) to work in the modern sector (low fertility, high wages). On the hand, financial development can affect fertility by reducing the importance of the old-age security motive. Families' access to the credit market will renders current consumption less dependent on current income. If current income depends on the number of children that they have, then the development of a banking system would then reduce parents' optimal number of children. The purpose of the present study is to investigate the impact of financial development on fertility forselected developed and developing economies. In this study, we employ the fixed effects and random effects models using annual data ranges from 1980-2010. Our results suggest financial development affect fertility positively for the developed countries, but for the developing countries financial development adversely affecting fertility. Serials Publications 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/55428/1/Declining%20fertility%20and%20financial%20development%20in%20high-income%20and%20low-income%20countries.pdf Habibullah, M. S. and Farzaneh, N. and Haji Din, Badariah (2016) Declining fertility and financial development in high - income and low - income countries. International Journal of Applied Business and Economic Research, 14 (1). pp. 277-290. ISSN 0972-7302
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Putra Malaysia
building	UPM Institutional Repository
collection	Online Access
language	English
description	In recent years, studies have found that financial development affect the rate of fertility worldwide. Available theories linking fertility and the banking sector have contended that when financial intermediaries develop the share of employment in the modern sector rises and the fertility rate falls. With a well-developed financial system, firms will have easy access to the credit market, thus, enhanced production efficiency and firm can raise wages in the modern market. Families have a choice to move from the traditional market (high fertility rate, low wages) to work in the modern sector (low fertility, high wages). On the hand, financial development can affect fertility by reducing the importance of the old-age security motive. Families' access to the credit market will renders current consumption less dependent on current income. If current income depends on the number of children that they have, then the development of a banking system would then reduce parents' optimal number of children. The purpose of the present study is to investigate the impact of financial development on fertility forselected developed and developing economies. In this study, we employ the fixed effects and random effects models using annual data ranges from 1980-2010. Our results suggest financial development affect fertility positively for the developed countries, but for the developing countries financial development adversely affecting fertility.
format	Article
author	Habibullah, M. S. Farzaneh, N. Haji Din, Badariah
spellingShingle	Habibullah, M. S. Farzaneh, N. Haji Din, Badariah Declining fertility and financial development in high - income and low - income countries
author_facet	Habibullah, M. S. Farzaneh, N. Haji Din, Badariah
author_sort	Habibullah, M. S.
title	Declining fertility and financial development in high - income and low - income countries
title_short	Declining fertility and financial development in high - income and low - income countries
title_full	Declining fertility and financial development in high - income and low - income countries
title_fullStr	Declining fertility and financial development in high - income and low - income countries
title_full_unstemmed	Declining fertility and financial development in high - income and low - income countries
title_sort	declining fertility and financial development in high - income and low - income countries
publisher	Serials Publications
publishDate	2016
url	http://psasir.upm.edu.my/id/eprint/55428/ http://psasir.upm.edu.my/id/eprint/55428/1/Declining%20fertility%20and%20financial%20development%20in%20high-income%20and%20low-income%20countries.pdf
first_indexed	2018-09-07T18:36:04Z
last_indexed	2018-09-07T18:36:04Z
_version_	1610974877247864832

Declining fertility and financial development in high - income and low - income countries

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