Effects of Female Education on Economic Growth: A Cross Country Empirical Study

Abstract

AbstractThis study examines the extent to which women's education affects long-term economic growth in the Asia Pacific region. It focuses on the time period between 1990 and 2010, using data collected in randomly selected Asia Pacific countries: Bangladesh, Cambodia, China, India, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Vietnam. In addition, it emphasizes the impact of female education on economic growth as measured by GDP, literacy, fertility, and the female labor force. Using panel regression analysis, it is found that the fertility rate, female labor force participation rate and female primary school enrollment are significant factors for annual per capita income growth.Keywords: Female education * Economic growth * Asia Pacific region * Fertility rate * Female labor force participation rate * Panel data * Random effects model(ProQuest: ... denotes formulae omitted.)More than half of the world's population lives in the Asia Pacific region. Many of them face extreme poverty, as close to half of them earn less than a dollar per day. This region has a high primary school enrollment ratio and literacy rates, despite the lack of gender equality in education. In addition, it is difficult to find labor participation rates for both women and men. With regard to education, the gender gap is very strong in the Asia Pacific region, particularly at the secondary or high school level. For example, courses such as nutrition, nursing, and teacher training are dominated by girls while boys would select engineering, law, agriculture, and technology courses. In the Philippines, for example, more than 90 percent of female students are enrolled in female-dominated courses.Poverty is analyzed through many factors including per capita income, distribution of assets and income, quality of government, its policies, and institutions related to education, health and other aspects of human development. The poor living in rural and urban areas face different issues. While the rural poor have limited access to education and health care, the urban poor depend on cash for survival as they are unable to grow their own food unlike their rural counterparts. It is also difficult for the urban poor to find good jobs due to the lack of higher education. This study explores the relationship between women's education and economic growth in the Asia Pacific region, which faces major problems in the level of economic development, school enrollment as well as gender discrimination in enrollment (Asia-Pacific Forum for Environment and Development [APFED], 2000). The Asia Pacific region is divided into five sub regions: South Asia, Southeast Asia, Northeast Asia, Central Asia, and the Pacific. From these sub regions, several countries have been selected for analysis in this study. These include Bangladesh, Cambodia, China, India, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Vietnam. Myanmar is the poorest among these countries as well as in the Southeast Asian sub region: 20% of Myanmar's citizens are below the national poverty line. Compared to other countries in the Asia Pacific region, Myanmar also has the highest infant mortality rate, and more than 20% of children from poor families do not attend school.Literature ReviewThere are two very basic reasons for examining a link between education and economic growth. First, at a general level, living standards have risen tremendously. Education is now necessary for people to benefit from scientific advancement as well as to contribute to it. Second, at a more specific level, a wide range of econometric studies indicates that the income levels that individuals can command depend on their level of education. If people who are educated earn more than those who are not, shouldn't the same be true of countries? The level of output per hour worked in a country, if not the rate of change of output per hour worked, ought to depend on the population's educational attainment. …