Evaluating the effectiveness of foreign capital flows in mitigation of gender inequality in Developing countries
Abstract
Over the decades, foreign capital inflows (FCIs) have been contributing to the economic growth and development of underdeveloped and developing economies. However, it is imperative to inspect the effect of FCIs on gender inequality (GI). The latter includes SDG 5 which addresses the elimination of GI in all its forms. The existing empirical literature on the relationship between FCI-GI nexus shows mixed results. The current study scrutinized the effects of FCIs on GI in a panel of 71 developing economies for the time period 2001-2019. The study used the system generalized methods of moments (GMM) for model estimation. The positive and significant impact of remittances on G I was explored. It was found that official development assistance (ODA) caused an increase in GI in developing economies. The results showed that gross domestic product (GDP) and trade openness (TOP) increased GI. However, good governance was found to reduce GI in developing economies. The outcomes provide a guideline for the role of FCIs in reducing GI in developing economies.
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