Technology-intensive Trade and Gender Inequality-Emerging Country Perspective
Dr. Farha Fatema

University of Dhaka, Bangladesh

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Purpose: This study examines how technology intensity in international tradeaffects gender inequality in labor force participation and wage in emergingeconomies.Methodology: The study decomposes the export and import into four sectors asHigh tech (HT), Medium tech (MT), low tech (LT), and primary products (PP)based on technology intensity. It then examines the long-run and short-runrelationship using panel ARDL method and direction of casualty between the tradeof these sectors and gender inequality in labor market using vector error correctionmodel (VECM) based Granger causality test.Findings: The analysis results suggest that export and import in any sectorsclassified based on technology intensity such as high tech, low tech, medium-tech,and PP reduces gender inequality in labor force participation and wage. The resultsalso suggest significant long-run bidirectional causality between TC and FLFPRand LFP inequality except for very few cases. On the other hand, trade-in any sectorcauses gender wage inequality in the short-run only, whereas, in the long run,gender wage inequality results in trade in different sectors.Limitations: The study has some limitations. Firstly, the unavailability of tradedata for several emerging countries makes the analysis a little bit weak. Secondly,the female labor force participation data is not also totally structured. Thirdly, thereis a considerable lack of structured and consistent gender wage gap data that makesthe analysis questionable. Finally, the availability of consistent data in all aspectswill make the study more reliable and robust.Practical Implication: This study will open a new window in the trade-genderinequality research field and help formulate policies in this field to use trade as aninstrument to reduce gender inequality.Originality: This study analyses trade and gender inequality in labor forceparticipation linkage from a different perspective. The study identifies the effects oftrade classified based on technology intensity on female labor force participationand wage, which is a unique approach in this research field of trade-gender nexu