Gender Gap and Trade Liberalization: An Analysis of some selected SAARC countries

Audi, Marc and Ali, Amjad (2018): Gender Gap and Trade Liberalization: An Analysis of some selected SAARC countries.

Abstract

Trade liberalization plays a significant role in the development of an economy as all countries have insufficient resources and depend on trade to grow and prosper. The key objective of this study is to explore the relationship of trade liberalization on women empowerment. It also aims to find out whether it is beneficial for gender gap or not. This study utilizes the sample of five SAARC countries for the time period of 15 years, that is, from 2000 to 2014. It emphasizes on tariffs and regulatory trade barriers, which are considered significant indicators of trade liberalization, along with the freedom of trade, that is a composite index. The gender gap is measured through the female to male participation rate, whereas, gender development index (GDI) is used as a relative measure of women empowerment after adjusting HDI for gender disparity in three dimensions. The other control variable incorporated in this study includes: gross domestic product growth, education of female, the female unemployment rate and the hiring regulations & minimum wage standards. The econometric technique applied is the pooled ordinary least squares (OLS) method along with various diagnostic tests. When trade liberalization goes up, it increases the GDI, meaning lower gender disparity, which in turn refers to greater women empowerment. The research concludes that whenever the trade liberalization increases, it does not reduce the gender gap, which means the female to male participation rate goes down. It encourages women to actively participate in the labor market, but it does not play a role in reducing gender gap. Education of the female is essential because it creates awareness among girls and enhances their skills, which leads to empowering women, making them self-sufficient and active participants in the economic activity, which can improve their standard of living.

• Item Type: MPRA Paper
• Language: English
• Keywords: Gender Gap, Trade liberalization
• Subjects: F - International Economics > F1 - Trade; J - Labor and Demographic Economics > J0 - General

References

Aguayo-Tellee, E. (2012). The impact of trade liberalization policies and FDI on gender inequalities: A literature review. World development report 2012.

Aguayo-Tellee, E. Airola, J. Juhn, C. and Villegas-Sanchez, C. (2010). Did trade liberalization help women? The case of Mexico in the 1990’s (No. w16195). National Bureau of Economic Research.

Ahmad, N. and Hyder, K. (2006). Gender inequality and trade liberalization: A Case Study of Pakistan (No. 16252). University Library of Munich, Germany.

Ahmad, S. (2008). Trade and Gender: Quantitative Approaches, United Nations Conference on Trade and Development (UNCTAD). India, Retrieved from http://artnet.unescap.org/tid/artnet/mtg/cbcam_d1s4.pdf

Atieno, R. (2006). Female Participation in the labor market: the case of the informal sector in Kenya (No. RP_157). African Economic Research Consortium.

Author, D. (2003). Lecture Note: The Economics of Discrimination- Theory. Graduate Labor Economics I, Massachusetts Institute of Technology, Cambridge, 1-18.

Beck, N. (2004). Longitudinal (panel and time series cross- section) data. Unpublished manuscript, Retrieved from http//www.nyu.edu/gsas/dept/politics/faculty/beck/beck_home.html

Becker, G. S. (1971). The Economics of Discrimination. University of Chicago Press Economics Books.

Benefits of free trade. (2013). Retrieved from http://www.economicshelp.org/trade/benefits_free_trade/

Berik, G. Rodgers, Y. V. D. M. and Seguino, S. (2009). Feminist economics of inequality, development, and growth. Feminist Economics, 15(3), 1-33.

Black, S. E. and Brainerd, E. (2004). Importing equality? The impact of globalization on gender discrimination. Industrial & Labor Relations Review, 57(4), 540-559.

Black, S. E. and Brainerd, E. (2002). Importing Equality? The impact of Globalization on Gender Discrimination (No. 9110). National Bureau of Economics Research, Inc.

Bolaky, B. and Freund, C. L. (2004). Trade, regulations, and growth. World Bank Policy Research Working Paper, (3255).

Burgoon, B. and Hiscox, M. J. (2008). The Gender Divide over International Trade: Why do men and women have different views about openness to the world economy? Cambridge, MA: Harvard University.

Cagatay, N. (2005). Gender inequalities and international trade: a theoretical reconsideration. Department of Economics, University of Utah, United States Consultado el, 2.

Cakir, O. (2008). The Relationship between Economic Development and Female Labor Force Participation within the Framework of U-Shaped hypothesis: Evidence from Turkey. Department of Economics, School of Economics and Management, Lund University, Sweden.

Chakraborty, T. (2012). Impact of Industrialization on Relative Female Survival: Evidence from Trade Policies (No. 6647). Institute for the Study of Labor (IZA).

Contessi, S. De Nicola, F. and Li, L. (2012). International trade, Female Labor, and entrepreneurship in MENA countries. FBR of St. Louis Working Paper No.053C.

Dollar, D. and Gatti, R. (1999). Gender in equality, income, and growth: are good times good for women? (Vol. 1). Washington, DC: Development Research Group. The World Bank.

Ederington, J. Minier, J. and Troske, K. (2009). Where the Girls Are: Trade and Labor Market Segregation in Colombia (No. 4131). Institute for the study of Labor (IZA).

EL-Hamidi, F. (2008). Trade Liberalization, Gender Segregation, and Wage Discrimination: Evidence from Egypt. Economic Research Forum Working Papers (No. 414).

Elson, D. and Evers, B. (1996a). Gender aware country economic reports: concepts and sources. GENECON Unit Working Paper 1, University of Manchester.

Elson, D. Grown, C. and Cagatay, N. (2007). Mainstream, heterodox, and feminist trade theory. The Feminist Economics of Trade, 5, 33.

Essays, U. K. (2013). Advantages and Disadvantages of Free Trade Economics Essay. Retrieved from http://www.ukessays.com/essays/economics/advantages-and-disadvantages-of-free-trade-economics-essay.php?cref=1

Fofana, I. Cockburn, J. and Decaluwe, B. (2005). Developing country Superwomen: Impacts of Trade Liberalization on Female Market and Domestic Work. Cahier de recherché/ Working Paper, 5, 19.

Fontana, M. (2003). The gender effects of trade liberalization in developing countries: a review of literature. Discussion Papers in Economics, (101).

Fontana, M. and Wood, A. (2000). Modeling the Effects of Trade on Women, at work and at Home. World Development, 28(7), 1173-1190.

Fontana, M. Joekes, S. P. and Masika, R. (1998). Global trade expansion and liberalization: gender issues and impacts. Brightone: Institute of Development Studies.

Gaddis, I. and Pieters, J. (2012). Trade Liberalization and Female Labor Force Participation: Evidence from Brazil (No. 6809). Institute for the Study of Labor (IZA).

Galor, O. and Weil, D. N. (1996). The Gender Gap, Fertility, and Growth. American Economic Review, 86(3), 374-87.

Goldin, C. (1995). The U-Shaped Female Labor Force Function in Economic Development and Economic History. Investment in Women’s Human Capital, 61.

Goldin, C. and Katz, L. (2008). Gender Differences in Careers, Education and Games. American Economic Review, 98(2), 363-69.

Gwartney, J. Lawson, R. and Norton, S. (2015). Economic freedom of the world 2015 annual report. The Fraser Institute.

Hill, M.A. and King, E. (1995). Women’s education and economic well- being. Feminist Economics, 1(2), 21-46.

Importance of International Trade. (2005). http://www.moneyinstructor.com/doc/internationaltrade.asp

Juhn, C. Ujhelyi, G. and Villegas-Sanchez, C. (2013). Trade liberalization and gender inequality. The American Economic Review, 103(3), 269-273.

Kabeer, N. and Natali, L. (2013). Gender Equality and Economic Growth: Is there a Win- Win? IDS Working Papers, 2013(417), 1-58.

Klasen, S. (1999). Does gender inequality reduce growth and development: Evidence from cross- country regressions (pp. 1- 12). World Bank, Development Research Group, Poverty Reduction and Economic Management Network.

Klasen, S. and Lamanna, F. (2009). The impact of gender inequality in education and employment on economic growth: new evidence for a panel of countries. Feminist economics, 15(3), 91-132.

Korinek, J. (2005). Trade and Gender: Issues and interactions (No. 24). OECD Publishing.

Lagerlof, N. P. (2003). Gender equality and long run growth. Journal of Economic Growth, 8(4), 403-426.

Love, P. and Lattimore, R. (2009). Protectionism? Tariffs and other barriers to trade. International Trade: Free, Fair and Open, 54-57.

Maqsood, F. (2014). Impact of Globalization on Female Labor Force Participation in the SAARC Region. Pakistan Journal of Social Sciences (PJSS), 34(2), 523-533.

Mehmood, B. Ahmad, S. and Imran, M. (2015). What drives female labor force participation in Muslim countries? A generalized method of moments inference. Pakistan Journal of Commerce and Social Sciences, 9(1), 120- 130.

Mehra, P. (2015). More women workers can boost growth: IMF chief. The Hindu. http://www.thehindu.com/news/national/more-women-workers-can-boost-growth-imf cheif/article7622559.ece

Neumayer, E. and De Soysa, I. (2007). Globalization women’s economic rights and forced labour. The World Economy, 30(10), 1510-1535.

Orbeta, A. C. (2002). Globalization and employment: The impact of trade on employment level and structure in the Philippines (No. DP2002-4). Philippine Institute for Development Studies.

Ozay, O. (2011). Implications of Trade Policy Changes on Gender Inequalities. Fe journal: Feminist Critique/Fe Dergi: Feminist Elestiri, 3(2), 33-53.

Peebles, D. (2005). Increasing gender inputs into Canadian international trade policy positions at the WTO. Status of Women Canada.

Pieters, J. (2015). Trade liberalization and gender inequality. IZA World of Labor.

Pramanik, M. A. A. (2010). Trade liberalization and its impact on Bangladesh Economy and Female Workers.

Ramsey, J. B. (1969). Test for specification errors in classical linear squares regression analysis. Journal of the Royal Statistical Society, Series B, 31, 350- 371.

Rehman, M. M. (2014). Trade liberalization and gender gap: Bangladesh experience. The journal of applied business and economics, 16(2), 57.

Riaz, W. (2014). Intra SAARC Trade and Non- Tariff Barriers. Pakistan Research Institute of Market Economy. Retrieved from http://primeinstitute.org/intra-saarc-trade-and-non-tariff-barriers/

Saure, P. and Zoabi, H. (2009). Effects of Trade on Female Labor Force Participation (No. 2009-2012). Swiss National Bank.

Schultz, T. (2006). Does the Liberalization of Trade Advance Gender Equality in Schooling and Health? (No.2140). Institute for the Study of Labor (IZA).

Seguino, S. (2000). Accounting for gender in Asian economic growth. Feminist Economics, 6(3), 27-58.

Seguino, S. and Grown, C. (2006). Gender equity and Globalization: macroeconomic policy for developing countries. Journal of International Development, 18 (8), 1081-1104.

Siddiqi, A. H. (2009). Finance of Foreign Trade and Foreign Exchange (5th Ed.). Karachi, Pakistan: Royal Book Company.

Siddiqui, R. (2009). Modeling gender effects of Pakistan’s trade liberalization. Feminist Economics, 15(3), 287-321.

Siegmann, K. A. (2006). Gender and Globalization in South Asia. South Asian Journal, 12, 50-64.

Spielmann, C. and Busse, M. (2005). Gender inequality and Trade. In proceedings of the German Development Economics Confrence, Kiel 2005(No.8). Verein fur Socialpolitik, Research Committee Development Economics.

Tariq, M. and Sultan, Z. A. (2008). Status of Women in SAARC countries: A Comparative Analysis. Gender Empowerment and Development, 29.

Tzannatos, Z. (1998). Women and labor market changes in the global economy: growth helps, inequalities hurt, and public policy matters (No. 20051). The World Bank.

Van-Staveren, I. (2005). Five methodological approaches for research on gender and trade impacts. ISS Working Paper Series/ General Series, 417, 1-40.

Verick, S. (2014). Female Labor force participation in developing countries. IZA World of Labor.

Vijaya, R. (2003). Trade, skills and persistence of gender gap: A theoretical framework for policy discussion. International Gender and Trade Network (IGTN).

Wacziarg, R. and Welch, K. H. (2008). Trade liberalization and growth: New evidence. The World Bank Economic Review, 22(2), 187-231.

Women Watch, (2011). Gender equality and Trade Policy, United Nations Inter- Agency Network on women and Gender Equality (IANWGE) Resource paper. Retrieved from http://www.un.org/womenwatch/feature/trade/gender_equality_and_trade_policy.pdf

Wood, A. and Riado-Cano, C. (1999). Skills, trade, and international inequality. Oxford economic papers, 51(1), 89-119.