Gender inequality and FDI: empirical evidence from developing Asia-Pacific countries

Abstract

Gender now is a key factor in inquiry into economic development. Gender inequality places an impact on economic development due to the constraints on labor market and women’s empowerment. The link between gender inequality and foreign direct investment (FDI) in developing countries is a contentious issue. The present study aims to investigate the impact of gender inequality on the FDI inflow in developing countries. Research data consists of 27 developing economies in the Asia-Pacific region during the period of 1992 to 2011. By employing the two steps System Generalized Method of Moments (GMM), the study finds that gender inequality plays an important role in attracting FDI flows into developing countries.