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Female Labor Market Participation and Economic Growth: The Case of Pakistan

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  • Adnan Khaliq
  • Dilawar Khan
  • Sultan Akbar
  • Muhammad Hamayun
  • Barkat Ullah

Abstract

Female labor force plays a significant role in the economic development of a country. The core objective of this paper is to examine the nexus between female labor force participation rate and Pakistan¡¯s economic growth using time series data for the period 1990-2014. The data was extracted from World Development Indicators database. Augmented-Dickey Fuller (ADF) test was applied to examine the data for unit root. The results show that both the variables--- female labor force participation rate and economic growth---are stationary at first difference i.e. I(1). The error correction model (ECM) and Johansen co-integration tests were used to examine the co-integration relation between the variables. The econometric results conclude that there is long-run and a U-shaped link between economic growth and women labor force participation rate of Pakistan. The results conclude that lower female labor force participation rate leads to lower economic growth in Pakistan. This paper has important policy implications, suggests that policies intend to remove such barriers could help to enhance the Pakistan¡¯s economic growth.

Suggested Citation

  • Adnan Khaliq & Dilawar Khan & Sultan Akbar & Muhammad Hamayun & Barkat Ullah, 2017. "Female Labor Market Participation and Economic Growth: The Case of Pakistan," Journal of Social Science Studies, Macrothink Institute, vol. 4(2), pages 217-230, July.
    • Handle: RePEc:mth:jsss88:v:4:y:2017:i:2:p:217-230
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    References listed on IDEAS

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    1. Tam, Henry, 2011. "U-shaped female labor participation with economic development: Some panel data evidence," Economics Letters, Elsevier, vol. 110(2), pages 140-142, February.
    2. Frank T. Denton & Byron G. Spencer, 1997. "Population, Labour Force, and Long-term Economic Growth," Independence and Economic Security of the Older Population Research Papers 25, McMaster University.
    3. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    4. Chaudhuri, Sanjukta, 2010. "Women's Empowerment in South Asia and Southeast Asia: A Comparative Analysis," MPRA Paper 19686, University Library of Munich, Germany.
    5. Mehak Ejaz, 2007. "Determinants of Female Labor Force Participation in Pakistan An Empirical Analysis of PSLM (2004-05) Micro Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(Special E), pages 204-235, September.
    6. Nooreen Mujahid & Naeem uz Zafar, 2012. "Economic Growth-Female Labour Force Participation Nexus: An Empirical Evidence for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 565-586.
    7. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    8. Schultz, T.P., 1991. "International Differences in Labor Force Participation in Families and Firms," Papers 634, Yale - Economic Growth Center.
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    Cited by:

    1. Hina Amber & Bezawit Beyene Chichaibelu, 2023. "Patterns and Causes of Female Labor Force Participation: An Age–Period–Cohort Analysis for Pakistan," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-31, April.

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