The Effects of Female Employment on Economic Growth: An Application of Panel Data on the Member Countries of the Organisation of Islamic Cooperation

Abstract Introduction – Female employment and policies are an important aspect of growth and development. Inadequate utilisation of female labour force within the national economy reflects in economic and social indicators especially in developing countries. Women’s self-development, active participation in labour markets, and social and economic opportunities are the main factors in the development of countries. This study attempts to research the effects of female work force participation in the member countries of the Organisation of Islamic Cooperation (OIC) on economic growth in time period between 2004 and 2016. The countries were selected among the countries that have high and middle human development index according to Human Development Report in 2017. Purpose – In this chapter, it is aimed to support the employment of female labour force and to show its share in development and growth in the member countries of the OIC. The aspect differs from similar studies to address the issue in term of Islamic countries. Methodology – While analysing the impact of female employment on growth, the panel data analysis method and fixed and random effect model were used. Findings – It has been found that female employment has a positive impact on economic growth for the selected OIC countries.