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Does Mainstreamed Aid Advance Gender Parity? Insights from Empirical Evidence

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  • Bedassa Tadesse

    (Department of Economics, University of Minnesota–Duluth, 1318 Kirby Drive, Duluth, MN 55812, USA)

  • Elias K. Shukralla

    (Department of Economics, Siena College, Loudonville, NY 12211, USA)

  • Bichaka Fayissa

    (Department of Economics and Finance, Middle Tennessee State University, Murfreesboro, TN 37132, USA)

Abstract

This study investigates the effectiveness of gender-mainstreamed aid in mitigating gender inequality. We develop a robust theoretical model that accounts for the potential positive and perceived negative effects of shifts toward gender parity, capturing diverse societal perspectives. Utilizing a comprehensive dataset on aid activities focused on gender (in)equality and women’s empowerment across 118 countries from 2009 to 2022, primarily low-income nations, we employ panel fixed-effects and mixed-effects random coefficient models to examine the impact of gender-related aid on gender inequality. Our findings reveal that significant gender-related aid (SGRA), which integrates gender considerations into broader development projects, reduces gender inequality in 115 out of 118 countries. In contrast, principal gender-related aid (PGRA), which explicitly targets gender equality, shows significant effects in only 85 countries. When analyzing the effects of both components of gender-related aid, we find that SGRA consistently impacts gender inequality. However, the effectiveness of PGRA becomes less clear-cut. This observation, coupled with the variation in the effectiveness of the components across countries, underscores the importance of developing strategies tailored to country-specific needs and conditions in promoting gender parity effectively.

Suggested Citation

  • Bedassa Tadesse & Elias K. Shukralla & Bichaka Fayissa, 2024. "Does Mainstreamed Aid Advance Gender Parity? Insights from Empirical Evidence," Economies, MDPI, vol. 12(8), pages 1-27, July.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:8:p:192-:d:1441865
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    References listed on IDEAS

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    1. Paul Collier & David Dollar, 2004. "Development effectiveness: what have we learnt?," Economic Journal, Royal Economic Society, vol. 114(496), pages 244-271, June.
    2. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    3. Pamela Abbott & Roger Mugisha & Roger Sapsford, 2018. "Women, Land and Empowerment in Rwanda," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1006-1022, August.
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