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Does Globalization Encourage Female Employment? A Cross-Country Panel Study

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  • Asrifa Hossain

    (School of Accounting, Finance, Economics and Decision Sciences, Western Illinois University, 1 University Circle, Macomb, IL 61455, USA)

  • Shankar Ghimire

    (School of Accounting, Finance, Economics and Decision Sciences, Western Illinois University, 1 University Circle, Macomb, IL 61455, USA)

  • Anna Valeva

    (School of Accounting, Finance, Economics and Decision Sciences, Western Illinois University, 1 University Circle, Macomb, IL 61455, USA)

  • Jessica Harriger-Lin

    (School of Accounting, Finance, Economics and Decision Sciences, Western Illinois University, 1 University Circle, Macomb, IL 61455, USA)

Abstract

The objective of the paper is to examine whether female participation in the labor force (FPLF) is influenced by a country’s participation in international markets through foreign direct investment (FDI)—a proxy for globalization. We obtained a panel dataset from the World Development Indicators database for 99 countries from 2001 to 2018, and used the system generalized method of moments (system GMM) to estimate a dynamic panel model with appropriate specification tests. The results show that FDI encourages FPLF to some extent, but the positive effects are more robust for low- and middle-income countries than high-income countries. We also found that results are sensitive to extreme outlier observations in the explanatory factor FDI. These results have important policy implications for low- and middle-income countries; they recommend a focus on sectors that generate higher FDI, as these sectors stand to yield the greatest benefits with regards to female labor force participation.

Suggested Citation

  • Asrifa Hossain & Shankar Ghimire & Anna Valeva & Jessica Harriger-Lin, 2022. "Does Globalization Encourage Female Employment? A Cross-Country Panel Study," World, MDPI, vol. 3(2), pages 1-13, March.
    • Handle: RePEc:gam:jworld:v:3:y:2022:i:2:p:11-218:d:781928
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    References listed on IDEAS

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    Cited by:

    1. Manuchehr Irandoust, 2024. "Does FDI encourage female labor force participation? Evidence from Arab countries," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 59(3), pages 174-189, July.

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