Research and development expenditure gap: does women’s political empowerment matter?

Abstract

Sustained economic growth has been high on the list of priorities of many developed and developing nations, and the importance of new technology to sustained economic growth has long been recognized in the literature. Despite the extent of this literature and the importance of innovation to economic outcomes, surprisingly little is known about the effect of women’s political empowerment in the research sector. This study proposes filling this gap by examining the effect of women’s political empowerment on research and development expenditure. Using data from 66 developed and developing countries and system GMM estimation, we show that women’s political empowerment has exerted, on average, a positive effect on research and development investment. Moreover, further study shows that women's level of participation in civil society has the largest effect, followed by women’s civil liberties. By analyzing these underlying transmission channels, we find that this effect is partly due to the positive effects of women's political empowerment on the accumulation of human capital and on institutional quality, which in turn improve the level of spending on research and development. Based on these results, economic policy implications are discussed.