Does the Level of Gender Equality in National Parliament have an Impact on Economic Growth?

Abstract: It is clear that economic growth is achieved by a number of means depending on theoretical affiliation and also that growth rate varies across countries. The thesis investigates the relationship between economic growth and the proportion of representation by women in national parliament across countries. Women are discriminated at every level in the society based on gender and the thesis analyses the effects on production and growth, based on the fact that half of the population are not given equal opportunities to participate in economic activities. The study is performed through two cross-country regression analyses, divided by low- and high-income countries with secondary data. The variables included are: the proportion of seats represented by women, initial GDP/capita, FDI, level of education, population growth, and terms of trade and level of democracy. The variables are chosen in accordance to growth theories. The findings cannot isolate if a high proportion of female parliamentarians increase growth, but the result indicates that a more gender equal economy operate at a higher production level. Increased proportion of female representation in local parliament should according to theory, increase inclusive incentives and policies for women in the labour force and enrolment in higher education, thus increasing the average level of human capital. Previous studies support the result; gender equality is viewed as “smart economics”.