NEXUS BETWEEN FEMALE LABOR FORCE PARTICIPATION AND FERTILITY RATE IN ORGANIZATION OF ISLAMCI COOPERATION (OIC) MEMBER MUSLIM COUNTRIES OF ASIA

Abstract

The underlying study uniquely measured the relationship between female fertility rate (FR)
and their participation in labor force for Organization of Islamic Cooperation (OIC) member
Muslim countries of Asia. 24 Muslim countries of OIC were selected in the study to measure
this relationship. Population Density (PD), Income level (IL) measured through Gross
Domestic Product per capita (GDPC) along with Female Labor Force Participation (FLP) have
also been used to predict the FR of selected OIC Muslim countries. Data for all variables of
FR, FLP, PD and IL have been accessed from world bank development indicators. Panel and
time series annual data have been accessed for 24 years ranging from the year of 1995-2018
with total of 552 observations. FR have been regressed with FLP, PD and IL using EViews
software. Before applying regression, normality of the data has been checked through Jarque
Bera test. Fixed effect model was selected for analysis based on the criteria of Hausman test.
Descriptive statistics showed that the data is slightly positive skewed but overall, the
distribution is found to be normally distributed. Correlation analysis showed that FLP has
strong but negative relationship with FR while PD and IL have negative but moderate and weak
relationships with FR. Regression Analysis showed that the proposed model for OIC Muslim
member countries explained the 83 percent variation in the FR. FLP and PD found to be the
good predictors of FR while IL found to have insignificant relationship with FR. Based on the
results, it has been concluded that FLP and PD acted as natural barriers for FR. It is concluded
that whenever, females from OIC muslim countries participated more in the labor force or
engaged in full time or part time jobs there is probability that these females had less birth rate.
Similarly, females of urban or densely populated areas have less birth or fertility rate as
compared to rural or less densely populated areas. This is because of the cost associated for the
growth and development of the young ones. Income level, measured through GDPC found to
be insignificant. From this, it is concluded that for OIC Muslim countries of Asia, child bearing
cost has nothing to do with richness and poverty. On the basis of empirical analysis based on
552 observations of 24 countries for 24 years data of OIC Muslim member countries, the study
proved that FLP and PD are the strong predictor for FR with reverse relationship in between
them. So, the Asian Muslim countries who intended to control its birth rates should ensure the
participation of females in jobs or in self-employment activities. Urbanization found to be
another factor in reducing the FR of these countries. The study highlighted and identified the
very important dynamics of FR as most of the Asian Muslim countries are overpopulated which
impeded their development and economic growth. By promoting FLP and focusing on PD,
these Muslim countries of OIC in Asia can minimize the FR in their respective regions.