How Gender Inequalities Hinder Development : Cross-Country Evidence

This paper assumes that gender inequality hinders economic and human development : a one standard deviation change in the Gender Inequality Index (GII) will increase long term income per capita by 9,1% and Human Development Index (HDI) by 4%. Gender inequality may be a explanation of economic development differences : 16% of the long term income difference between South Asia and East Asia & Pacific can be accounted for by the difference in gender inequality. Moreover, this paper provides evidence of a vicious circle between gender inequality and long term income. The multi-dimensional concept of gender inequality is measured by a composite index with endogenous weightings : the Gender Inequality Index (GII). To correct endogeneity and simultaneity problems, the two-stage and three-stage least square methods are used separately. In this way, the steady state per capita income and the human development levels are estimated for 109 developing countries.