Gender Equality and Economic Growth in BSR and EAP Countries: A Quantitative Approach
Purpose: The main objective of the paper is to quantitatively analyze the relationship between gender equality and economic growth in selected countries worldwide. Design/Methodology/Approach: The study is based on the Solow Augmented model. Four hypotheses have been tested: Hypothesis 1 (H1): Higher educational levels of women lead to greater economic growth. Hypothesis 2 (H2): Greater participation of women in the labor market leads to greater economic growth. Hypothesis 3 (H3): Higher fertility and fecundity rates lead to lower economic growth. Hypothesis 4 (H4): Greater participation of women in the democratic system leads to greater economic growth. Findings: The research on links between gender, economic growth and development has proven that the power and mutual impact of these categories can differ significantly depending on the type of growth and key driving factors. The relation between GDP per capita and female wages was proved statistically significant. Practical Implications: Increased women’s market activity means a more effective allocation of human resources, better use of people’s talents (both women and men), the consequence of which is a positive impact on economic growth. Gender equality was thus described as “smart economics”. We have proved that in the European countries under study plus Georgia and Armenia a 1 % increase of female wages will result in GDP per capita rising by 0.56%. Originality/value: The paper is based on own, primary research.