Gender Equality and Economic Growth of Nepal: A Positive Synergy Hypothesis

Nepal is at a historical period of social, economic and demographic transition. Having multiple transitions at once have provided rooms to explore the experiences that are undergoing on different avenues. This study attempts to explore the relation between gender dynamics and economic growth. Nepal is witnessing historical changes in gender dynamics in the last few decades. These changes are expected to add synergy effect on other socio-economic development. Using time series data for the period of 1990 to 2005, this study investigates to what extent gender equality in life expectancy, education, labour force participation and HDI promote economic growth of Nepal. First, this article calculates the gender equality using the auxiliary of UNDP's HDI calculation methodology in the above mentioned area. Second, this equality index is regressed with lagged differences of GDP per capita growth and the results are analyzed. Although different studies have shown gender inequality in above-mentioned indicators impede economic growth, this study finds no conclusive relationship in case of Nepal. While the gender equality is increasing considerably, economic growth is not yet supported by the increase. In the past 15 years female advantages in life expectancy, education attainment and labour force participation are remarkable.