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Journal of Finance & Economics Research - Volume 9, Issue 2 2024
By Wasim Abbas Shaheen, Qurat ul Ain Sajid, Noman Shafi, Usman Ullah
10.20547/jfer2409206
Keywords: Female Labor Force Participation (FLFP); Foreign Direct Investment (FDI); Employment Industry; Literacy Rate; Economic Growth
This study seeks to determine the effects of foreign direct investment inflow in the context of the female labor force participation FLFP, with special emphasis on the synchronizing variables of employment structure and female literacy. This research covers the period between 2011 and 2020 using data from the World Bank and OECD countries. It employs regression analysis alongside unit root tests and GMM in STATA 17. The study demonstrates that FLFP correlates positively, and significantly, with FDI inflows. As such, countries that have a higher female labor participation seem to attract more FDI. Thus, the inclusion of women in economic activities supports greater FDI. Moreover,the positive association is further strengthened by the empirical evidence that industries with a higher female labor concentration tend to be more favorable for foreign direct investment. In addition, higher female literacy increases the positive correlation between FLFP and FDI. This illustrates that education is fundamental to women economically. Increased literacy levels provide women with better skills, thus enhancing the competitiveness of the labor market as well as the willingness of investors. This research gives great importance to the policies related to female participation in the economy and level of literacy if the goal is to increase the amount of FDI in the region. Gender based approaches should be developed towards employment creation and education and training should be issued too. FDI should encourage firms to hire women and spend money on educating the general female populace this way the investment will yield greater economic benefits. This research contributes to the body of knowledge on gender economics, labor economics, international business, and global economic development via data demonstrating womens impact on contemporary economic phenomena.
Submission Date: 7 Nov, 2024 Reviews Completed: 26 Feb, 2025Acceptance Date: 1 Mar, 2025 Publication Date: 10 Mar, 2025