International trade under gender lens: Paving a way for equality

This research focuses on the relationship between international trade and gender equality in employment, extending beyond conventional quantity metrics to incorporate employment quality, which is a crucial dimension that remains unexplored in existing literature. By employing the Continuous Updated Estimator Generalized Method of Moments (CUEGMM) model on cross-country data from 2000 to 2022, the study reveals the multidimensional nature of the relationship between trade and women's employment. The findings indicate that increased female force participation, coupled with trade expansion, catalyzes the “feminization of labour” phenomenon. However, viewing from the quality of employment dimension, this employment growth is disproportionately concentrated in informal work arrangements. These patterns align with feminist economic theory’s proposition that women represent competitive advantages in international trade. To enhance productivity and maintain flexibility in international markets and global value chains, export-oriented firms might leverage the disadvantaged position of female labour to offer them informal jobs. The findings imply that considering trade's contribution to gender equality in employment necessitates a nuanced approach that transcends the simplistic metric of job creation, with the joint consideration of the quality of these jobs. This study contributes to a more comprehensive understanding of international trade through a gender-responsive lens, aiding in developing gender-sensitive economic policies, which are essential for promoting both equity and inclusive development.