DOES ECONOMIC INTEGRATION INCREASE FEMALE LABOUR FORCE PARTICIPATION? SOME NEW EVIDENCE FROM VIETNAM
While several studies have, directly or indirectly, showed the importance of economic integration in job creation and destruction, direct empirical evidence for Female Labor Force Participation (FLFP) is still sparse. We take the case of Vietnam – a country that has come out of poverty largely due to her export-induced economic growth – and examine the impacts on FLFP of economic integration over the period 1999-2014. Our results suggest that Vietnam’s export sector, which relies heavily on foreign direct investment and free trade agreements, is an important contributor to FLFP. Economic integration with high-income countries (compared to middle- and low-income countries) was found to be most beneficial to FLFP in Vietnam. Our results also indicate that some traditional drivers of FLFP (such as fertility rate, health status, female adolescents out of secondary school, government education spending, and standard of living) became more (or less) important as Vietnam became more economically integrated.
Abbott, P., & Tarp, F. (2012). Globalization Crises, Trade and Development in Vietnam. Journal of International Commerce, Economics and Policy, 3, 1-23.
Adserà, A. (2004). Changing Fertility Rates in Developed Countries. The Impact of Labour Market Institutions. Journal of Population Economics, 17, 17-43.
Anwar, S., & Nguyen, L. P. (2011). Foreign Direct Investment and Trade: The Case of Vietnam. Research in International Business and Finance, 25, 39-52.
Athukorala, P.C., & Tien, T. Q. (2012). Foreign Direct Investment in Industrial Transition: The Experience of Vietnam. Journal of the Asia Pacific Economy, 17, 446-463.
Bailey, M. J. (2006). More Power to the Pill: The Impact of Contraceptive Freedom on Women’s Life Cycle Labour Supply. The Quarterly Journal of Economics, 121, 289-320.
Becker, G. S. (1965). A Theory of the Allocation of Time. The Economic Journal, 75, 493-517.
Black, S.E., & Spitz-Oener, A. (2010). Explaining Women’s Success: Technological Change and the Skill Content of Women’s Work. The Review of Economics and Statistics, 92, 187-194.
Bloom, D.E., Canning, D., Fink, G, Finlay, J. E. (2009). Fertility, Female Labour Force Participation. Journal of Economic Growth, 14, 79-101.
Braunstein, E., & Brenner, M. (2007). Foreign Direct Investment and Gendered Wages In Urban China. Journal of Feminist Economics, 13, 3-4.
Bui, T. H. H., & Chen, Q. (2017). An Analysis of Factors Influencing Rice Export in Vietnam based on Gravity Model. Journal of the Knowledge Economy, 8, 830-844.
Cai, L. (2010). The Relationship between Health and Labour Force Participation: Evidence from A Panel Data Simultaneous Equation Model. Labour Economics, 17, 77-90.
Caliendo, M., & Schmidl, R. (2016). Youth Unemployment and Active Labour Market Policies in Europe, IZA. Journal of Labour Policy, 5, 1-30
Cameron, L. A., Dowling, J. M., & Christopher, W. (2001). Education and Labour Market Participation of Women in Asia: Evidence From Five Countries. Economic Development and Cultural Change, 49, 459-477
Cavalcanti, T. V., & Tavares, J. (2011). Women Prefer Larger Governments: Growth, Structural Transformation, and Government Size. Economic Inquiry. 49, 155-171.
Cerrutti, M. (2000). Economic Reform, Structural Adjustment and Female Labour Force Participation in Buenos Aires, Argentina. World Development, 28, 879-91.
Chaudhary, A. (2011). Changing Structure of Indian Textiles Industry After MFA (Multi Fibre Agreement) Phase Out: A Global Perspective. Far East Journal of Psychology and Business, 2, 1-23.
Cheng, B. S. (1996a). The Causal Relationship between African American Fertility and Female Labour Supply: Policy Implications. The Review of Black Political Economy, 25, 77-88
Cheng, B. S. (1996b). An Investigation of cointegration and Causality between Fertility and Female Labour Force Participation. Applied Economics Letters, 3, 29-32.
Cheng, B. S., Hsu, R. C. & Chu, Q. (1997). The Causality between Fertility and Female Labour Force Participation in Japan. Applied Economics Letters, 4, 113-116.
Cheng, B. S. (1999). Co-integration and Causality between Fertility and Female Labour Participation in Taiwan: A Multivariate Approach. Atlantic Economic Journal, 27, 422-434.
Cramer, J. A. C. (1980). Fertility and Female Employment: Problems of Causal Direction. American Sociological Review, 167-190.
Da-Rocha, J., & Fuster, L. (2006). Why Are Fertility Rates and Female Employment Ratios Positively Correlated Across OECD Countries? International Economic Review, 47, 1187-1222.
Dogan, E., Islam, M. Q., & Yazici, M. (2018). Real Exchange Rates and Job Flows: Evidence from Turkey. Applied Economics, 50, 4489-4499.
Engelhardt, H., & Prskawetz, A. (2004). On the Changing Correlation between Fertility and Female Employment over Space and Time. European Journal of Population, 20, 35-57.
Erzan, R., & Holmes, C. (1992). The Restrictiveness of the Multi-Fibre Arrangement on Eastern European Trade (Working Papers No. 860). International Economics Department, The World Bank.
Evan, T., Vozárová, P. (2018). Influence of Women’s Workforce Participation and Pensions on Total Fertility Rate: A Theoretical And Econometric Study. Eurasian Economic Review, 8, 51-72.
Evans, M. D., Kelley, J. (2008). Trends in Women’s Labour Force Participation in Australia: 1984-2002. Social Science Research, 37, 287-310.
Gaddis, I., & Pieters, J. (2017). The Gendered Labour Market Impacts of Trade Liberalization Evidence from Brazil. Journal of Human Resources, 52, 457-490.
Goldin, C. (1990). Understanding the Gender Gap: An Economic History of American Women. Oxford University Press, NY.
Goldin, C. (1994). Labour Markets in the Twentieth Century (NBER Working Paper No. 58). National Bureau of Economic Research.
Goldin, C. (1995). The U-shaped Female Labour Force Function in Economic Development and Economic History (NBER Working Paper No. 4707). National Bureau of Economic Research.
Goto, K., Natsuda, K., & Thoburn, J. (2011). Meeting The Challenge of China: The Vietnamese Garment Industry In The Post MFA Era. Global Networks, 11, 355-379.
Grabowski, R., & Self, S. (2014). Some Preliminary Evidence of the Impact of the 2008-2009 Financial Crisis on Women. Applied Economics, 46, 3673-81.
Hasan, R., Mitra, D., Ranjan, P., & Ahsan, R. N. (2012). Trade Liberalization and Unemployment:Theory and Evidence from India. Journal of Development Economics, 97, 269-280.
He, X., & Zhu, R. (2016). Fertility and Female Labour Force Participation: Causal
Evidence from Urban China. The Manchester School, 84, 664-74.
Himaz, R. (2009). Is There A Boy Bias In Household Education Expenditure? The Case Of Andhra Pradesh In India Based On Young Lives Data (Working Paper No. 46).
Young Lives, Department of International Development, University of Oxford, Oxford, UK.
Im, K.S., Pesaran, M.H., & Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115, 53-74.
Institute for Social Development Studies (ISDS). (2015). Social Determinants of Gender Inequality in Vietnam. ISDS. https://vietnam.embassy.gov.au/files/hnoi/ISDS_Report_Binh%20dang%20
International Labour Organization (ILO). (2015). Gender Equality in Recruitment and Promotion Practices in Vietnam. ILO. http://ilo.org/hanoi/Whatwedo/Publications/WCMS_349666/lang--en/index.htm
Iregui, A.M., Melo-Becerra, L.A., & Ramírez-Giraldo, M. (2016) Health Status and Labour Force Participation: Evidence for Urban Low and Middle Income Individuals in Colombia, M.T. Portuguese Economic Journal, 15, 33-55.
Kanjilal-Bhaduri, S., & Pastore, F. (2018). Returns to Education and Female Participation Nexus: Evidence from India. The Indian Journal of Labour Economics, 61, 515-539.
Kinoshita, Y., & Guo, F. (2015). What Can Boost Female Labour Force Participation in Asia? (IMF Working Paper WP/15/56). International Monetary Fund.
Kodama, N. (2018). Translating Corporate Culture across International Borders: Foreign Direct Investment and Female Employment in Japan. The World Economy, 41, 1-18.
Korinek, J. (2005). Trade and Gender: Issues and Interactions (OECD Trade Policy Papers No. 24). OECD.
Le, Q-P. (2010). Evaluating Vietnam’s Changing Comparative Advantage Patterns. ASEAN Economic Bulletin, 27, 221-230.
Levin, A., Lin, C.F., & Chu, C.S.J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108, 1–24.
Liu, A. Y. (2000). Children at Work: Do Regions Matter and Why? A Case Study in Vietnam (Asia Pacific School of Economics and Management Working Papers 00-2). Australian National University.
Liu, A. Y. (2004). Flying Ducks? Girls’ Schooling in Rural Vietnam: A Revisit. Asian Economic Journal, 18, 293-318.
Ma, H., Qiao, X., & Xu, Y. (2015). Job Creation and Job Destruction in China during 1998-2007. Journal of Comparative Economics, 43, 1085-1100.
Maddala, G.S., & Wu, S. (1999). A Comparative Study of Unit Root Tests With Panel Data and A New Simple Test. Oxford Bulletin of Economics and Statistics, 61, 631–652.
Mammen, L., & Paxon, C. (2000). Women’s Work and Economic Development. Journal of Economic Perspectives, 14, 141-164.
McNown, R., & Ridao-Cano, C. (2005). A Time Series Model of Fertility and Female Labour Supply in the UK. Applied Economics, 37, 521-532.
Mincer, J. (1962) Labour Force Participation of Married Women in H. G. Lewis, ed., Aspects of Labour Economics, Princeton, NJ Princeton University Press.
Mishra, V., Nielsen, I., & Smyth, R. (2010). On the Relationship between Female Labour Force Participation and Fertility In G7 Countries: Evidence from Panel Cointegration and Granger Causality. Empirical Economics, 38, 361-372.
Mishra, V., & Smyth, R. (2010). Female Labour Force Participation and Total Fertility Rates in The OECD: New Evidence from Panel Cointegration and Granger Causality Testing. Journal of Economics and Business, 62, 48-64.
Mortensen, D. T., & Pissarides, C. A. (1994). Job Creation and Job Destruction in The Theory of Unemployment. The Review of Economic Studies, 61, 397-415.
Mujahid, N., & Uz Zafar, N. (2012). Economic Growth-Female Labour Force Participation Nexus: An Empirical Evidence for Pakistan. The Pakistan Development Review, 565-585.
Nadvi, K., Thoburn, J. T., Bui, T. T., Nguyen T. H. H, Nguyen, T. H, Dao, H. L., & Enrique, B. D. A. (2003). Vietnam in the Global Garment and Textile Value Chain: Implications for Firms and Workers. Journal of International Development, 16, 111-123.
Narayan, P. K., & Smyth, R. (2006). Female Labour Force Participation, Fertility and Infant Mortality in Australia: Some Empirical Evidence from Granger Causality Tests. Applied Economics, 38, 563-572.
Narayan, S., & Nguyen, T. T. (2016). Does the Trade Gravity Model Depend on Trading Partners? Some Evidence from Vietnam and Her 54 Trading Partners. International Review of Economics & Finance, 41, 220-237.
Narayan, S., & Nguyen, T.T. (2019). Are Exports More Responsive to Clean or Dirty Energy? The Case of Vietnam’s Exports to 54 Countries. Energies, 12, 1558-1579.
Narayan, S., & Bui, M.T.N. (2020). Does Corruption in Exporter And Importer Country Influence International Trade? Emerging Markets Finance and Trade. https://doi.org/10.1080/1540496X.2019.1679116
Ngo, V. D., Janssen, F., Leonidou, L. C., & Christodoulides, P. (2016). Domestic Institutional Attributes as Drivers of Export Performance in an Emerging and Transition Economy. Journal of Business Research, 69, 2911-2922.
Nguyen, K.D. (2011). Patterns and Dynamics of Vietnam’s Revealed Comparative Advantage and Export Specialization. Journal of Economics and Development, 13, 19-37.
Nguyen, T. T. A., Luu, D. M., & Trinh, D. C. (2016). The evolution of the Vietnamese Industry (Learning to Compete Working Paper No 19). Brookings. https://www.brookings.edu/wpcontent/uploads/2016/07/L2C_WP19_Nguyen-Luu-and-Trinh-1.pdf
Noburu, Y. (2017). Local Institutions and Global Value Chains: Development and Challenges of Shrimp Aquaculture Export Industry in Vietnam. Journal of Agribusiness in Developing and Emerging Economies, 7, 318-338.
Ranjan, P. (2012). Trade Liberalization, Unemployment, and Inequality With Endogenous Job Destruction. International Review of Economics & Finance, 23, 16-29.
Rashid, A., & Akram, M. (2017). Trade Competitiveness and Employment: Job Creation or Job Destruction. International Economic Journal, 31, 245-296.
Research Center for Gender, Family and Environment in Development (CGFED) & International Persistent Organic Pollutants Elimination Network (IPEN). (2017). Stories of Women Workers in Vietnam’s Electronics Industry. https://goodelectronics.org/stories-women-workers-vietnams-electronicsindustry/
Robertson, R., & Lopez-Acevedo, G. (2012). Sewing Success? Employment, Wages, and Poverty following the End of the Multi-Fibre Arrangement. World Bank Publications. https://openknowledge.worldbank.org/handle/10986/13137
Salamaliki, P. K., Venetis, I. A., & Giannakopoulos, N. (2013). The Causal Relationship between Female Labour Supply and Fertility in The USA: Updated Evidence Via A Time Series Multi-Horizon Approach. Journal of Population Economics, 26, 109-145.
Sanjukta, C. (2010). Women’s Empowerment in South Asia and Southeast Asia: A Comparative Analysis (MPRA Paper). University Library of Munich, Germany.
Sauré, P. & Zoabi, H. (2014). International Trade, The Gender Wage Gap, Female Labour Force Participation and Growth. Journal of Development Economics, 111, 17-33.
Schultz, T. P. (2002). Why Governments Should Invest More to Educate Girls. World Development, 30, 207-225.
Sharma, M. & Prashaant, A. (2009). An Analysis of Performance of the Indian Textile Industry in Quota Free Regime. Paradigm, 13, 98-109.
Siah, A. K., & Lee, G. H. (2015). Female Labour Force Participation, Infant Mortality and Fertility in Malaysia. Journal of the Asia Pacific Economy, 20, 613-629.
Steel, W. F. (1981). Female and Small-Scale Employment under Modernization in Ghana. Economic Development and Cultural Change, 30, 153-167.
Tsani, S., Paroussos, L., Fragiadakis, C., Charalambidis, I. & Capros, P. (2013). Female Labour Force Participation and Economic Growth in the South Mediterranean Countries. Economics Letters, 120, 323-328.
Thanh, V. T., & Duong, N. A. (2011). Revisiting Exports and Foreign Direct Investment in Vietnam. Asian Economic Policy Review, 6, 112-131.
Villarreal, A., & Yu, W-H. (2007). Economic Globalization and Women’s Employment: The Case of Manufacturing in Mexico. American Sociological Review, 72, 365-389.
Copyright (c) 2021 Buletin Ekonomi Moneter dan Perbankan
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.