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Gender Empowerment, Supply-Chain Linkages and Foreign Direct Investment: Evidence on Bangladesh

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  • Ana Margarida Fernandes
  • Hiau-Looi Kee

Abstract

This paper studies foreign direct investment (FDI) spillovers on gender labor market practices of domestic firms, based on a unique firm-to-firm dataset of Bangladesh’s textiles and garment sectors. We look at the female employment of domestic firms that are directly and indirectly related to the FDI firms through supply chain linkages. These domestic firms are either the local suppliers or customers of FDI firms or they share local suppliers and customers with the FDI firms. The estimates show that domestic firms related to FDI firms have significantly more female administrative workers, but not necessarily female non-administrative workers, due to more firm-to-firm interactions participated by the former.

Suggested Citation

  • Ana Margarida Fernandes & Hiau-Looi Kee, 2020. "Gender Empowerment, Supply-Chain Linkages and Foreign Direct Investment: Evidence on Bangladesh," CESifo Working Paper Series 8538, CESifo.
    • Handle: RePEc:ces:ceswps:_8538
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    References listed on IDEAS

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    1. Chen, Zhihong & Ge, Ying & Lai, Huiwen & Wan, Chi, 2013. "Globalization and Gender Wage Inequality in China," World Development, Elsevier, vol. 44(C), pages 256-266.
    2. KODAMA Naomi & Beata S. JAVORCIK & ABE Yukiko, 2016. "Transplanting Corporate Culture across International Borders: FDI and female employment in Japan," Discussion papers 16015, Research Institute of Economy, Trade and Industry (RIETI).
    3. Farole, Thomas & Cho, Yoonyoung & Bossavie, Laurent Loic Yves & Aterido,Reyes, 2017. "Bangladesh Jobs Diagnostic," Jobs Group Papers, Notes, and Guides 28032673, The World Bank.
    4. Naomi Kodama & Beata S. Javorcik & Yukiko Abe, 2018. "Transplanting corporate culture across international borders: Foreign direct investment and female employment in Japan," The World Economy, Wiley Blackwell, vol. 41(5), pages 1148-1165, May.
    5. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.
    6. Kee, Hiau Looi, 2015. "Local intermediate inputs and the shared supplier spillovers of foreign direct investment," Journal of Development Economics, Elsevier, vol. 112(C), pages 56-71.
    7. Remco H. Oostendorp, 2009. "Globalization and the Gender Wage Gap," The World Bank Economic Review, World Bank, vol. 23(1), pages 141-161, January.
    8. Bossavie, Laurent & Cho, Yoonyoung & Heath, Rachel, 2023. "The effects of international scrutiny on manufacturing workers: Evidence from the Rana Plaza collapse in Bangladesh," Journal of Development Economics, Elsevier, vol. 163(C).
    9. Beata S. Javorcik, 2015. "Does FDI Bring Good Jobs to Host Countries?," The World Bank Research Observer, World Bank, vol. 30(1), pages 74-94.
    10. Rocha,Nadia & Winkler,Deborah Elisabeth, 2019. "Trade and Female Labor Participation : Stylized Facts Using a Global Dataset," Policy Research Working Paper Series 9098, The World Bank.
    11. Havranek, Tomas & Irsova, Zuzana, 2011. "Estimating vertical spillovers from FDI: Why results vary and what the true effect is," Journal of International Economics, Elsevier, vol. 85(2), pages 234-244.
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    Cited by:

    1. Bournakis, Ioannis & Mei, Jen-Chung, 2023. "Gender, firm performance, and FDI supply–purchase spillovers in emerging markets," International Economics, Elsevier, vol. 175(C), pages 90-105.

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    More about this item

    Keywords

    foreign direct investment; women; female labor force participation; supply chain linkages; Bangladesh;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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