Dependence, Distorted Development, and Fertility Trends in Noncore Nations: A Structural Analysis of Cross-National Data

Abstract

To evaluate the hypothesis that dependence on developed nations distorts demographic development in less developed countries (LDCs) a researcher used panel regression analysis to study variables from 62 nations. Multinational corporate penetration an estimate of the shares of both a nations capital and its labor that are controlled by developed country based transnational corporations was used as a measure of the level of dependence. The analysis demonstrated that school enrollment was highly correlated with level of development social insurance program history and both family planning effort (FPE) measures. In addition countries that underwent the most economic growth the most concerted FPEs etc. had the most rapid decline in fertility rates. Conversely those with high levels of multinational corporate penetration/dependency experienced either an increase in fertility or a slow decline. For example South Koreas 1965 CBR was 36 below the population mean of 45. In 1984 the CBR dropped to 20 even further below the population mean of 39 a dramatic absolute and relative fertility decline. South Korea also had the highest rate of economic growth and its increase in family planning program effort was dramatic: from no measurable effect in 1972 to the nation with the highest FPE score in 1982. In addition the level of multinational penetration was modest. In conclusion this research supports the view that intranational economic phenomena such as rate of economic growth and concerted FPEs contribute significantly to fertility decline. On the other hand multinational corporate penetration distorts development and impedes fertility reduction.