The Nexus Between Female Labor Force Participation and Economic Development: A Global Study Across the Phases of Demographic Dividends

Economic growth, commonly measured by Gross Domestic Product (GDP), is influenced by various factors, including the Female Labor Force Participation Rate (FLFPR), which remains notably low worldwide. Improving FLFPR is crucial for unlocking demographic dividends and advancing Sustainable Development Goals (SDGs). This research explores the impact of FLFPR, population size, the Human Development Index (HDI), energy consumption, and the Male Labor Force Participation Rate (MLFPR) on GDP, utilizing data from 118 countries between 1990 and 2019, categorized by different stages of demographic dividends. By employing advanced panel econometric techniques, the study indicates that population size may negatively affect GDP at the global level. Simultaneously, energy consumption emerges as a significant positive driver of GDP, particularly during the early stages of demographic dividends. HDI shows the most substantial positive effect among all variables, especially in post-dividend phases, highlighting the importance of prioritizing population quality over sheer quantity. MLFPR is pivotal in GDP growth, although its effects vary across demographic stages. Meanwhile, FLFPR reveals stage-specific influences, including a U-shaped relationship in pre-dividend phases and an inverse U-shaped relationship during early dividend stages. The analysis emphasizes a bidirectional causality among the variables, showcasing their intricate interdependence. The findings highlight the need for demographic-stage-specific strategies to enhance human development as a primary catalyst for sustainable economic growth.