Abstract
This study assesses the determinants of the fertility rate in Malaysia using the combined tests for cointegration and generalised variance decomposition analysis of time series data for the period 1980–2012. We find that the fertility rate is cointegrated with its determinants, i.e. female employment, female education, medical quality and per capita income. Consistent with findings from cross-sectional surveys and fertility theories, fertility in Malaysia has an inverse relationship with female employment, female education and medical quality. Additionally, we also find an inverted U-shape relationship between fertility and per capita income. Our study reaffirms that socio-economic determinants play a significant role in explaining the transition of fertility in Malaysia over the short-run and long-run.
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