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Trade Liberalization and Gender Wage Inequality: Panel ARDL Approach for Emerging Economies

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  • Farha Fatema

    (School of Economics, Huazhong University of Science and Technology, P.R China,)

  • Zhaohua Li

    (School of Economics, Huazhong University of Science and Technology, P.R China,)

  • Mohammad Monirul Islam

    (School of Economics, Huazhong University of Science and Technology, P.R China.)

Abstract

This study examines the co-integration and causality direction between trade openness, as a proxy to liberalization, and gender wage gap in the emerging economies. In this study, we applied panel auto-regressive distributed lag (PARDL) model to identify the association between trade openness and gender inequality in wage and Granger causality test to analyze the causality directions between them for 1994-2014. The results of co-integration and ARDL analyses of the panel dataset indicate that trade openness and gender wage gap are cointegrated, and fully modified OLS (FMOLS) and pooled mean group (PMG) estimates results identified a positive association between trade openness and gender pay inequality in the emerging economies. The results Granger causality analysis specifies a unidirectional causality from trade openness to gender wage gap in both short-run and long-run which infers that trade openness significantly raises wage inequality between male and female in the emerging countries.

Suggested Citation

  • Farha Fatema & Zhaohua Li & Mohammad Monirul Islam, 2018. "Trade Liberalization and Gender Wage Inequality: Panel ARDL Approach for Emerging Economies," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 64-70.
    • Handle: RePEc:eco:journ1:2018-01-8
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    Cited by:

    1. Rulia Akhtar & Muhammad Mehedi Masud & Nusrat Jafrin & Sharifah Muhairah Shahabudin, 2023. "Economic growth, gender inequality, openness of trade, and female labour force participation: a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(3), pages 1725-1752, June.

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    More about this item

    Keywords

    Trade openness; gender wage gap; Panel ARDL; Granger causality; unidirectional causality;
    All these keywords.

    JEL classification:

    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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