The Differential Impacts of Foreign Direct Investment on Genders in the Service Sector of South Asia

Abstract

This study investigated: 1) the impacts of Foreign Direct Investment (FDI) on gender inequality (2005-2015) in the service sector of South Asia; 2) the factors that moderate the impacts of FDI on gender inequality in the service sector. The study was approached as a quantitative study using secondary data on Greenfield FDI and women employment. It employs a fixed-effect model: panel regression with and without interaction terms. The study finds that: first, gender inequality in the service sector of South Asia has increased over time. Second, FDI inflow share a significant negative correlation with female employment. Third, women’s human capital and institutional settings moderate the impact of FDI on gender inequality in the service sector of South Asia.

Keywords

• foreign direct investment (fdi)
• gender inequality
• moderating factor
• service sector
• south asia