Assessing the impacts of globalization and gender parity on economic growth: empirical evidence from OIC countries

The contemporary debate on globalization and gender equality has a strong impact on economic growth. The present study analyzes the impacts of globalization and gender parity on economic growth in the Organization of Islamic Cooperation (OIC) 47 member countries for the period (1991–2017), using System GMM panel data technique. The results of system GMM have also been empirically estimated by making two groups (viz., low-income and high-income OIC member countries from the World Bank data classification, 2019) to examine the robustness of globalization and gender parity on economic growth. The results reveal that there is a negative impact of globalization on economic growth in the overall sample of OIC countries. When estimated by decomposing low-income countries and high-income countries, globalization has a significantly positive impact on economic growth in the case of high-income OIC countries, whereas globalization slashes GDP in the case of low-income OIC countries. The study finds that there is a positive impact of gender parity (ratio of female to male labor force work participation) on economic growth. Moreover, foreign remittances, government expenditures, capital formation, and human capital are also becoming the causes of a significant increase in economic growth in OIC member countries.