Foreign Direct Investment and Women Empowerment: New Evidence on Developing Countries
IMF Working Papers, January 25, 2018
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Bibliographic details
- Authors: Rasmané Ouedraogo, Elodie Marlet
- Published: January 25, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484339732.001
Overview
- Authors: Rasmané Ouedraogo, Elodie Marlet
- Publication date: January 25, 2018
- Core question: Assess the effects of foreign direct investment (FDI) on gender development and gender inequality in developing countries.
- Central hypothesis: FDI—via increased labor demand, technological spillovers, corporate social responsibility, and economic growth—can influence women’s welfare.
Methodology & Data
- Dataset: Panel dataset of 94 developing countries
- Time span: 1990 to 2015
- Analytical focus: Relationship between FDI inflows and measures of women’s welfare and gender inequality
Key Findings
- FDI inflows improve women’s welfare.
- FDI inflows decrease gender inequality.
- The positive impact of FDI is lower in countries where:
- women have low access to resources, and
- women face a heavier burden to open a business.
- Policy-relevant implication: To fully benefit from FDI inflows, countries should ensure that women can enjoy free access to the labor market and associated income.
Policy Recommendations
- Facilitate free access for women to the labor market.
- Reduce barriers that increase the burden on women to open a business.
- Improve women’s access to resources to amplify the welfare gains from FDI.
Subjects and Keywords
- Subject: Balance of payments, Education, Foreign direct investment, Gender, Gender inequality, Health, Women
- Keywords: Asia and Pacific, Central Asia, East Asia, FDI inflow, FDI stock, foreign direct investment, GDP growth, gender development, gender inequality, gender wage gap, labor market, North Africa, South Asia, wage discrimination, Women, WP