Female labour force participation and economic growth in selected Asean countries

ASEAN countries have experienced rapid economic growth through structural shifts in the economy and an increase in educational attainment levels in the last 20 years. The literature shows that the female labour force plays a significant role in the economic development of nations. The purpose of this study investigates the nexus between female labour force participation, Gross Domestic Product (GDP) per capita, total fertility rate, urban population, male unemployment and female education. This research uses secondary data from the World Development Indicators (2017) from 1990 to 2016 to study seven selected ASEAN countries namely Brunei Darussalam, Indonesia, Vietnam, the Philippines, Thailand, Malaysia and Singapore. This research presents three models with different objectives. Model 1 is to examine the relationship between female labour force participation and fertility rates in seven selected ASEAN counties. Model 2 is to examine the relationship between female education at a secondary school and the rate of female participation in the labour force through control variables such as GDP per capita, total fertility rate, urban population and male unemployment. Model 3 is to examine the existence of a nonlinear U-shape relationship between female labour force participation and economic growth in seven selected ASEAN countries. The Ordinary Least Square (OLS) and Threshold Regression are used to analyse the results in this research. Model 2 and 3 implemented semi-logarithm for partial indicators. Model 1 showed a relationship between female labour force participation and total fertility rate, whereby a 1 unit increase in TFR, will result in a decrease of FLFP by 18.27 per cent. This indicates that the increase in fertility will decrease the participation rate of females in the labour force due to the lack of time for women to join the labour market and at the same time they have to take care of their family's welfare for seven selected ASEAN .countries. Model 2's finding shows an increase of 1 per cent in education will cause an increase of 32.05 per cent in FLFP. This shows that an increase in the number of women who have completed their secondary school may contribute to the growth of the economy. Model 3 found that the U-shaped relationship between female labour force participation and GDP per capita. This finding validates the existence of a Li-shaped association between female labour force participation and GDP per capita. It is noted that a 1 per cent rise in GDP per capita results in a 6.25 per cent decline in female labour force participation as shown by the estimation of the linear term. The positive sign of non-linear (squared) term of GDP per capita indicates that a 1 per cent rise in GDP per capita (squared) results in a 3.7 per cent increase in female labour force participation. This means that for the seven selected ASEAN countries for the past 27 years, it supports the existence of a nonlinear Li-shaped hypothesis. In conclusion, national development is dependent on all of the above sectors. Based on this research, it is recommended that the equality of men and women should be implemented consistently in these countries, as falling fertility rates would lead to a lack of human capital and an ageing population in the future