Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors

This paper examines the effects of inward Foreign Direct Investment (FDI) on the female employment rate in the economy and the share of female employment across sectors. The empirical analysis is implemented through the Generalized Method of Moments (GMM) System estimator for dynamic panel models us...

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Main Author: Pascal L. Ghazalian
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Economies
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Online Access:https://www.mdpi.com/2227-7099/12/12/318
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author Pascal L. Ghazalian
author_facet Pascal L. Ghazalian
author_sort Pascal L. Ghazalian
collection DOAJ
description This paper examines the effects of inward Foreign Direct Investment (FDI) on the female employment rate in the economy and the share of female employment across sectors. The empirical analysis is implemented through the Generalized Method of Moments (GMM) System estimator for dynamic panel models using different empirical specifications and FDI openness indicators. The main results show that the overall effects of inward FDI on the national female employment rate are not statistically significant. However, they reveal that inward FDI has promoted the share of female employment in the service sector and has led to decreases in the share of female employment in agriculture. The FDI effects on the share of female employment in the industrial sector are found to be statistically insignificant. These results are generally supported when running the empirical analysis through alternative FDI openness indicators. Also, supplementary analysis reveals some variations in the magnitude of these effects over different national income categories. The findings in this paper emphasize FDI’s gendered influences in the labour market. They are consistent with the prevalence of macroeconomic channels through which inward FDI impacts female employment across sectors, and they encompass the underlying implications of various counteracting microeconomic factors.
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spelling doaj-art-9b018a0c125b4e6ca39c998aece6b5922025-08-20T02:53:34ZengMDPI AGEconomies2227-70992024-11-01121231810.3390/economies12120318Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across SectorsPascal L. Ghazalian0Department of Economics, University of Lethbridge, Lethbridge, AB T1K 3M4, CanadaThis paper examines the effects of inward Foreign Direct Investment (FDI) on the female employment rate in the economy and the share of female employment across sectors. The empirical analysis is implemented through the Generalized Method of Moments (GMM) System estimator for dynamic panel models using different empirical specifications and FDI openness indicators. The main results show that the overall effects of inward FDI on the national female employment rate are not statistically significant. However, they reveal that inward FDI has promoted the share of female employment in the service sector and has led to decreases in the share of female employment in agriculture. The FDI effects on the share of female employment in the industrial sector are found to be statistically insignificant. These results are generally supported when running the empirical analysis through alternative FDI openness indicators. Also, supplementary analysis reveals some variations in the magnitude of these effects over different national income categories. The findings in this paper emphasize FDI’s gendered influences in the labour market. They are consistent with the prevalence of macroeconomic channels through which inward FDI impacts female employment across sectors, and they encompass the underlying implications of various counteracting microeconomic factors.https://www.mdpi.com/2227-7099/12/12/318female employmentforeign direct investmentgender inequalitymultinational enterpriseseconomic developmentdynamic panel model
spellingShingle Pascal L. Ghazalian
Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
Economies
female employment
foreign direct investment
gender inequality
multinational enterprises
economic development
dynamic panel model
title Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
title_full Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
title_fullStr Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
title_full_unstemmed Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
title_short Women in Transition: The Dynamic Effects of Inward FDI on Female Employment in the Economy and Across Sectors
title_sort women in transition the dynamic effects of inward fdi on female employment in the economy and across sectors
topic female employment
foreign direct investment
gender inequality
multinational enterprises
economic development
dynamic panel model
url https://www.mdpi.com/2227-7099/12/12/318
work_keys_str_mv AT pascallghazalian womenintransitionthedynamiceffectsofinwardfdionfemaleemploymentintheeconomyandacrosssectors