Trade Liberalization and Gender Inequality in Emerging Economies - from the Perspective of Sustainable Development Goals

Abstract

Article History JEL Classification O50, F16, F60. The study identifies the effect of trade liberalization on gender inequality in labor market, welfare, and empowerment in the emerging economies considering the significance of gender inequality issue in sustainable development goals (SDGs). It uses global gender gap index (GGGI) and its four sub-indexes namely economic participation and opportunity, education, health and politics as indicators of gender inequality in different aspects. Due to the problem of endogeneity and the presence of time-invariant variables Hausman-Taylor estimation technique has been applied to a panel data set of 40 countries for the period of 2006-2014. The results of the study suggest that trade openness significantly reduces gender inequality in labor market in high growth EAGLE and NEST countries but increase the inequality in other emerging economies. The effect of trade openness in reducing gender inequality in welfare and empowerment is positive, but higher trade increases health gap in other emerging economies. The effects of culture and religion on gender inequality are mixed and differ substantially across countries. According to the findings of the study, trade and government expenditure can be used as essential tools to achieve gender equality goal of SDGs if the proper policy is adopted.

Mujeres trabajadoras en el marco del libre comercio

“…Por el lado contrario, también se han encontrado casos en los que la brecha de género salarial aumenta como consecuencia del libre comercio. Como Sepehrivand (2017) y Fatema et al (2018) observaron un conjunto de países en desarrollo, obtuvieron resultados contrarios a este primer autor; es decir, registraron un aumento en la desigualdad salarial. En este caso, el periodo observado fue más amplio, de 1994 a 2014 -frente al periodo de 2001 a 2013, estudiado por Sepehrivand-, y el número de países fue menor -dieciséis frente a treinta y cinco-.…”

The relationship between trade liberalization and gender disparity in education: Evidence from Pakistan

“…From a long-term perspective, the influence of openness strategies on gender findings may be of concern, as there is growing evidence that empowering women increases education and improves children's outcomes (Duflo, 2003;Juhn, Ujhelyi, & Villegas-Sanchez, 2014;Qian, 2008;Thomas, 1990). Two mainstream theories of international trade can be used to explain the impact of trade openness on gender imbalance (Fatema et al, 2017). According to the Heckscher-Ohlin theory, countries should focus on producing commodities for which they have plentiful factors of production.…”

“…As a result, trade liberalization improves women's health and education levels. Trade increases the government's revenue, allowing it to spend more on health, education and other social services (Fatema et al, 2017). As a result of the rapid growth effect of trade on education, many bilateral, regional and multilateral trade agreements have integrated provisions on trade and investment in education services which together make up the legal and institutional framework defining and controlling the openness of trade in educational services.…”

“…Gender bias in education and learning can be measured in various ways such as gross and net enrolment rates as well as completion and dropout rates. Gender disparities in education are measured in Pakistan using primary secondary enrolment ratios, the gap in girls-to-boys primary education enrolment ratios, adult literacy rates, the ratio of female to male schools and the number of female teachers per school as well as net school enrolment and women's share of teachers (Ahmed & Hyder, 2006;Chaudhry et al, 2010;Fatema et al, 2017). Many researchers have calculated the average year of education to measure gender disparity in education and learning.…”

Role of public health and trade for achieving sustainable development goals

“…Moreover, Takian and Akbari‐Sari (2016), Tamsma and Costongs (2018), Dietler et al (2019), Lee and Kim (2019), Sipido and Nagyova (2020) have also discussed the importance of public health in achieving SDGs. Fatema, Li, and Islam (2017) identified the effect of trade openness on gender inequality, empowerment and welfare in the emerging economies considering the SDGs. It was observed that trade openness had increased gender inequality in labor market in emerging economies but reduced inequality in high growth countries.…”