Female Labor Participation Rate and Economic Growth in South Asian Countries

Abstract

Abstract:This paper investigates the impact of economic growth on the female labor force participation rate (FLPR) in six selected South Asian countries by employing balanced panel data from 2000 to 2019. Pairwise Dumitrescu Hurlin Panel causality test is used to examine the panel causality test between economic growth and FLPR. Pooled OLS, random effects, fixed effect, PCSE, and dummy variable interaction models are used to examine the impact of economic growth. The panel causality test confirms a unidirectional relationship from economic growth to FLPR. The panel regression confirms the U-shape relationship in Pakistan, while Bangladesh, India, and Nepal predict inverse U-shape relationships. Maldives and Bhutan are showing an insignificant relationship between FLPR and economic growth. This study also indicates a joint significant and U-shaped relationship between FLPR and economic growth within six selected South Asian countries. The control variable female fertility, shows negative and significant while female education shows positive and significant impacts on FLPR. Therefore, governments of the region should frame various policies to improve the female labor market through access to education and various training programs. Further, they should provide access to child care, skill development, maternity provisions, accessible and safe transport, job reservations in different public sectors, and pattern of growth that generates more jobs.