Does Gender Equality Lead to Better-Performing Economies A Bayesian Causal Map Approach

Abstract

This study explores the existence of relationships between gender inequalities -represented by the components of the World Economic Forum (WEF) Global Gender Gap Index-and the major macroeconomic indicators. The relationships within gender inequalities in education, the labour market, health and the political arena, and between gender inequalities and gross macroeconomic aggregates were modelled with the Bayesian Causal Map, an effective tool that is used to analyze cause-effect relations and conditional dependencies between variables. A data set of 128 countries during the period 2007-2011 is used. Findings reveal that some inequalities have high levels of interaction with each other. In addition, eradicating gender inequalities is found to be associated with better economic performance, mainly in the form of higher gross domestic product growth, investment, and competitiveness.