Journal of Economics, Business, & Accountancy Ventura
Vol. 28 No. 2 (2025): August 2025

Economic Globalization and Fertility Rate: Evidence from Leading Export-Oriented Provinces in Indonesia

Inggrita Gusti Sari Nasution (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)
Ahmad Albar Tanjung (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)
Muhammad Syafii (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)



Article Info

Publish Date
25 Aug 2025

Abstract

This study examines the relationship between economic globalization and fertility in Indonesia’s 14 major exporting provinces during 2021–2025. Using a balanced panel dataset of 70 observations, the model is estimated through the Random Effect Model with the Panel EGLS Cross-section Random Effects method. Fertility Rate (FER) serves as the dependent variable. At the same time, Women in Higher Education (WHE), Female Labor Employment (FLE), Family Development Index (FAM), Child Care (CLD), Foreign Direct Investment (FDI), Trade Openness (TO), and Labor Leave Regulation (REG) are explanatory variables. The findings reveal that WHE, CLD, and TO significantly reduce FER, while FDI, FAM, and REG show weaker significance. FLE is not statistically significant. The positive WHE*REG interaction indicates that labor leave regulation attenuates the negative effect of women’s higher education on fertility, highlighting the need for stronger maternity leave policies and interministerial policy synergy. These results highlight the necessity of institutional alignment between trade-led economic expansion and social policies, suggesting that expanding maternity benefits and standardizing interministerial policy governance are essential for maintaining demographic sustainability in rapidly globalizing developing economies.

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Journal Info

Abbrev

jebav

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Economics, Business and Accountancy (JEBAV) addresses economics, business, banking, management and accounting issues that are new developments in business excellence and best practices, and methodologies to determine these in manufacturing and financial service organisations. It considers ...