Capital Formation and Three Major Sectorial Female Employments in Six South Asian Countries

Abstract

Female employment is a crucial measure especially for developing countries. It increases women empowerment, brings financial solvency, declines poverty rate and gender gap, reduces unemployment rate, and improves living standard and more. The prime goals of the paper are to investigate the impacts of capital formation on three major sectorial (agriculture, industry and service) female employments in six South Asian countries. The panel data set for the six South Asian countries is collected from 1991 to 2018. Fixed effect, random effects model and Hausman test have been employed to conduct the study. To discuss the impacts of capital formation on the three female employment sectors the study is splinted in three models. The econometric outcomes of the first model represent that there is a highly significant strong negative impact of gross capital formation on the agricultural sector. The study identifies that mechanization, structural transformation, declining agricultural land areas through capital formation, and female literacy rate are the key factors for this expected result. On the other side, the empirical results of the second and third models make it clear that gross capital formation has strong and highly significant positive impacts in the industrial and service sectors. Findings of the study confirm that economic growth, improvement of educational level, growth of manufacturing, advertising, marketing, finance, entertainment, telecommunications, media, hospitality sectors, RMG sector, tourism sector, banks, insurance companies, NGOs, trade related services, living standard, and health sector through capital formation are the responsible factors for these desired results in the industrial and service sectors’ female employment.