IMPACT OF GLOBALIZATION ON GENDER INEQUALITY IN LABOUR MARKET OF PAKISTAN

This study investigates the impact of Foreign Direct Investment (FDI) and Trade Openness (TO) on gender-based Labour Force Participation Rate Difference (LFPRD) and Wage Ratio (WR) in Pakistan. Using time series data (1982-2012), OLS and ARDL approach to cointegration are applied. The results indicate that FDI positively affects LFPRD and WR whereas openness is found negatively affecting LFPRD. To make certain the validity of results, all standard diagnostic tests related to error term, coefficients and model specification are applied. Further, results of the study are supported by recent empirical evidence. The main policy implication based on results of the study is that TO should be enhanced to decrease LFPRD in Pakistan, and FDI in non-services sector should be encouraged to enhance FLFP.