[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/121244.html
   My bibliography  Save this paper

Effects of Innovation and Economic Freedom on Female Economic Inclusion

Author

Listed:
  • Ofori, Pamela E.
  • Ofori, Isaac K.
  • Castelnovo, Paolo
Abstract
The Sustainable Development Goal 5 emphasises the need to achieve gender parity in economic participation. Perusing the extant scholarship on female economic inclusion in Africa, we identify two pressing gaps. First, we find that previous studies have not explored how innovation affects female economic inclusion (FEI). Second, we note that prior studies have not examined the interactive effect of innovation and economic freedom on FEI. This study addresses these gaps by using macro data from 1995-2022 for a sample of 51 African countries. Findings from the two-step system GMM estimator reveal the following: (1) innovation reduces FEI, whereas economic freedom increases it, and (2) economic freedom moderates innovation to promote FEI. Further, we find that this positive total effect of innovation on FEI is remarkable at higher thresholds of economic freedom. We conclude that for innovation to promote FEI in Africa, investments in promoting economic freedom are critical.

Suggested Citation

  • Ofori, Pamela E. & Ofori, Isaac K. & Castelnovo, Paolo, 2024. "Effects of Innovation and Economic Freedom on Female Economic Inclusion," MPRA Paper 121244, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121244
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/121244/1/MPRA_paper_121244.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Uchenna R. Efobi & Belmondo V. Tanankem & Simplice A. Asongu, 2018. "Female Economic Participation with Information and Communication Technology Advancement: Evidence from Sub‐Saharan Africa," South African Journal of Economics, Economic Society of South Africa, vol. 86(2), pages 231-246, June.
    3. Angulo-Guerrero, María J. & Pérez-Moreno, Salvador & Abad-Guerrero, Isabel M., 2017. "How economic freedom affects opportunity and necessity entrepreneurship in the OECD countries," Journal of Business Research, Elsevier, vol. 73(C), pages 30-37.
    4. Ibrahim Mike Okumu & Edward Bbaale & Madina Mwagale Guloba, 2019. "Innovation and employment growth: evidence from manufacturing firms in Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-27, December.
    5. Simplice A. Asongu & Joseph Amankwah‐Amoah & Rexon T. Nting & Godfred Adjapong Afrifa, 2021. "Information Technology and Gender Economic Inclusion in Sub-Saharan Africa," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 24(2), pages 120-133, April.
    6. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Inequality and the Economic Participation of Women in Sub-Saharan Africa: An Empirical Investigation," Working Papers of the African Governance and Development Institute. 19/027, African Governance and Development Institute..
    7. Melek Cil & Yildiz Yilmaz Guzey, 2024. "Technology and gender: Understanding the changing dynamics of female unemployment in the G7 countries," Journal of New Economy, Ural State University of Economics, vol. 25(1), pages 26-49, April.
    8. Aparna Mitra & Pooja Singh, 2006. "Human Capital Attainment and Female Labor Force Participation—The Kerala Puzzle," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(3), pages 779-798, September.
    9. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    10. John Anyanwu & Darline Augustine, 2013. "Gender Equality in Employment in Africa: Empirical Analysis and Policy Implications," African Development Review, African Development Bank, vol. 25(4), pages 400-420.
    11. Simplice Asongu & Nicholas M. Odhiambo, 2023. "Enhancing ICT for female economic participation in sub-Saharan Africa," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 15(2), pages 195-223, May.
    12. Ofori, Isaac K. & Figari, Francesco & Ojong, Nathanael, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," MPRA Paper 116956, University Library of Munich, Germany.
    13. Bogliacino, Francesco & Pianta, Mario, 2010. "Innovation and Employment: a Reinvestigation using Revised Pavitt classes," Research Policy, Elsevier, vol. 39(6), pages 799-809, July.
    14. Stephen Kehinde Medase & Michael Wyrwich, 2022. "The role of innovation for employment growth among firms in developing countries: Evidence from Nigeria," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 14(3), pages 610-619, April.
    15. Zuniga, Pluvia & Crespi, Gustavo, 2013. "Innovation strategies and employment in Latin American firms," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 1-17.
    16. Jane E. Ruseski & Katerina Maresova, 2014. "Economic Freedom, Sport Policy, And Individual Participation In Physical Activity: An International Comparison," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 42-55, January.
    17. Pamela E. Ofori & Simplice A. Asongu & Vanessa S. Tchamyou & Raufhon Salahodjaev, 2023. "The Synergy between Governance and Trade Openness in Promoting Female Economic Inclusion in Sub-Saharan Africa," Working Papers 23/001, European Xtramile Centre of African Studies (EXCAS).
    18. Emmanuel Sarpong-Kumankoma & Joshua Yindenaba Abor & Anthony Q. Q. Aboagye & Mohammed Amidu, 2020. "Economic freedom, competition and bank stability in Sub-Saharan Africa," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 70(7), pages 1510-1527, October.
    19. Lawrence Adu Asamoah & Francesco Figari & Andrea Vezzulli, 2021. "Spillover effects of innovation and entrepreneurial activity on income inequality in developing countries: A spatial panel approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1661-1686, October.
    20. Sinha, Avik & Sengupta, Tuhin & Alvarado, Rafael, 2020. "Interplay between Technological Innovation and Environmental Quality: Formulating the SDG Policies for Next 11 Economies," MPRA Paper 104247, University Library of Munich, Germany, revised 2020.
    21. Tsani, Stella & Paroussos, Leonidas & Fragiadakis, Costas & Charalambidis, Ioannis & Capros, Pantelis, 2013. "Female labour force participation and economic growth in the South Mediterranean countries," Economics Letters, Elsevier, vol. 120(2), pages 323-328.
    22. Tolulope Osinubi & Simplice Asongu, 2020. "Globalization and female economic participation in MINT and BRICS countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 48(6), pages 1177-1193, October.
    23. Vivarelli, Marco, 2012. "Innovation, Employment and Skills in Advanced and Developing Countries: A Survey of the Literature," IZA Discussion Papers 6291, Institute of Labor Economics (IZA).
    24. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    25. Isaac K. Ofori & Francesco Figari & Nathanael Ojong, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," Working Papers 23/023, European Xtramile Centre of African Studies (EXCAS).
    26. Niclas Berggren & Henrik Jordahl, 2006. "Free to Trust: Economic Freedom and Social Capital," Kyklos, Wiley Blackwell, vol. 59(2), pages 141-169, May.
    27. Isaac K. Ofori & Francesco Figari & Nathanael Ojong, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," Working Papers of the African Governance and Development Institute. 23/023, African Governance and Development Institute..
    28. Jan-Egbert Sturm & Jakob De Haan, 2001. "How robust is the relationship between economic freedom and economic growth?," Applied Economics, Taylor & Francis Journals, vol. 33(7), pages 839-844.
    29. Xavier Cirera & Leonard Sabetti, 2019. "The effects of innovation on employment in developing countries: evidence from enterprise surveys," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(1), pages 161-176.
    30. Uchenna R. Efobi & Belmondo V. Tanankem & Simplice A. Asongu, 2018. "Female Economic Participation with Information and Communication Technology (ICT) Advancement: Evidence from Sub-Saharan Africa," Research Africa Network Working Papers 18/005, Research Africa Network (RAN).
    31. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
    32. Rasmané Ouedraogo & Elodie Marlet, 2018. "Foreign Direct Investment and Women Empowerment: New Evidence on Developing Countries," IMF Working Papers 2018/025, International Monetary Fund.
    33. Dieckhoff, Martina & Gash, Vanessa & Steiber, Nadia, 2015. "Measuring the effect of institutional change on gender inequality in the labour market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39, pages 59-75.
    34. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    35. Edward Asiedu & Nurokinan Chimbar, 2020. "Impact of remittances on male and female labor force participation patterns in Africa: Quasi‐experimental evidence from Ghana," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1009-1026, August.
    36. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    37. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    38. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    39. Diego Aboal & Paula Garda & Bibiana Lanzilotta & Marcelo Perera, 2015. "Innovation, Firm Size, Technology Intensity, and Employment Generation: Evidence from the Uruguayan Manufacturing Sector," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(1), pages 3-26, January.
    40. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ofori, Pamela E. & Ofori, Isaac K. & Castelnovo, Paolo, 2024. "Effects of Innovation and Economic Freedom on Female Economic Inclusion," EconStor Preprints 298786, ZBW - Leibniz Information Centre for Economics.
    2. Pamela E. Ofori & Simplice A. Asongu & Vanessa S. Tchamyou, 2021. "The Synergy between Governance and Economic Integration in Promoting Female Economic Inclusion in Sub-Saharan Africa," Working Papers 21/071, European Xtramile Centre of African Studies (EXCAS).
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(1), pages 71-103, February.
    4. Ofori, Isaac K. & Freytag, Andreas & Asongu, Simplice A., 2024. "Economic globalisation and Africa's quest for greener and more inclusive growth: The missing link," International Economics, Elsevier, vol. 178(C).
    5. Gbolonyo, Emmanuel Y. & Ofori, Isaac K. & Ojong, Nathanael, 2024. "Does Economic Complexity Promote Inclusive Green Growth," EconStor Preprints 298785, ZBW - Leibniz Information Centre for Economics.
    6. Pamela E. Ofori & Simplice A. Asongu & Vanessa S. Tchamyou & Raufhon Salahodjaev, 2023. "The Synergy between Governance and Trade Openness in Promoting Female Economic Inclusion in Sub-Saharan Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 23/001, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    7. Bruno Emmanuel Ongo Nkoa & Cédric Meytang & Thierry Mamadou Asngar & Guivis Zeufack Nkemgha, 2024. "What Drives Life Insurance Development in Sub-Saharan Africa? The Role of Information and Communication Technology," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6878-6907, June.
    8. Simplice A. Asongu & Mushfiqur Rahman & Mohammad Alghababsheh, 2022. "Information Technology, Business Sustainability and Female Economic Participation in Sub-Saharan Africa," Working Papers 22/057, European Xtramile Centre of African Studies (EXCAS).
    9. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    10. Barrell, Ray & Nahhas, Abdulkader, 2018. "Economic integration and bilateral FDI stocks: the impacts of NAFTA and the EU," LSE Research Online Documents on Economics 90372, London School of Economics and Political Science, LSE Library.
    11. Harald Oberhofer & Marian Schwinner, 2017. "Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA," WIFO Working Papers 534, WIFO.
    12. Orkhan Nadirov & Bruce Dehning, 2020. "Tax Progressivity and Entrepreneurial Dynamics," Sustainability, MDPI, vol. 12(9), pages 1-21, April.
    13. Rahman, Mizanur, 2008. "The Impact of a Common Currency on East Asian Production Networks and China’s Exports Behavior," MPRA Paper 13931, University Library of Munich, Germany.
    14. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "How enhancing gender inclusion affects inequality: Thresholds of complementary policies for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(1), pages 132-142, January.
    15. Vanessa S. Tchamyou & Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa," African Development Review, African Development Bank, vol. 31(3), pages 261-274, September.
    16. Mateo Zokalj, 2016. "The impact of population aging on public finance in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 40(4), pages 383-412.
    17. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    18. Ansgar Belke & Holger Zemanek & Gunther Schnabl, 2010. "Current Account Balances and Structural Adjustment in the Euro Area," Ruhr Economic Papers 0176, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. repec:zbw:rwirep:0176 is not listed on IDEAS
    20. Holger Zemanek & Ansgar Belke & Gunther Schnabl, 2010. "Current account balances and structural adjustment in the euro area," International Economics and Economic Policy, Springer, vol. 7(1), pages 83-127, May.
    21. Bousmah, Marwân-al-Qays & Iwuji, Collins & Okesola, Nonhlanhla & Orne-Gliemann, Joanna & Pillay, Deenan & Dabis, François & Larmarange, Joseph & Boyer, Sylvie, 2022. "Costs and economies of scale in repeated home-based HIV counselling and testing: Evidence from the ANRS 12249 Treatment as Prevention trial in South Africa," Social Science & Medicine, Elsevier, vol. 305(C).

    More about this item

    Keywords

    Africa; Innovation; Economic freedom; Female economic inclusion; GMM.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:121244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.