Abstract

The principal objective of this paper is to investigate the dilemma between the female labour force participation rate and total fertility rate for the ASEAN-6 countries from the period 1995 to 2013 using panel cointegration and long-run structural estimation. The cointegration results confirm that the female labour force participation rate and total fertility rate are cointegrated for the panel of ASEAN-6 countries. Whereas, long-run Granger causality authenticate the causality run from the total fertility rate to the female labour force participation rate. Moreover, the results show that 1percent increase in the total fertility rate cause in a 0.44 percent decrease in the female labour force participation rate for the ASEAN-6 countries. The TFR highest negative effect observed in Indonesia and smallest observed in Thailand. The results of fully modify ordinary least square confirm the long run panel relationship between female labour force and total fertility rate.

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