Foreign Direct Inflows and Gender Inequality Nexus: An Analysis from Developing Countries

Abstract

Foreign direct investment is generally regarded as beneficial for a nation’s overall growth. There are many positive influences of such investment on both the home and host economies. We have investigated the effect of gender inequality on foreign direct investment inflow in underdeveloped economies by using data from 2000 to 2024. Gender inequality with human capital, trade openness, population growth, and economic growth were taken as explanatory variables. The study results found that gender inequality in employment positively affected the foreign direct investment inflow in the developing economies. Results also showed that human capital, trade openness, and population growth contributed much towards foreign direct investment inflows. The findings suggested that multinationals should provide more jobs and higher wages for women. Moreover, there should be a better working environment for women in these nations. Finally, the Government should provide a more financially and politically stable environment for attracting more foreign direct investment from the host countries.