Document Type : Research Paper

Authors

• fatemeh karami ¹
• Mohammad Ali Asaadi ²
• sadegh khalilian ³

¹ PhD Student, Department of Agricultural Economics, Faculty of Agriculture, Tarbiat Modares University, Tehran, Iran

² PhD Graduate in Agricultural Economics, Faculty of Agriculture, Tarbiat Modares University, Tehran, Iran

³ Professor at Tarbiat Modares University

Abstract

Introduction

In today's world, women's participation and status are recognized as key indicators in assessing a country's level of development. A review of global trends reveals that the role of women in economic growth, social development, and the achievement of justice has received more attention than ever before. Women's empowerment, particularly in rural areas, not only enhances labor productivity but also plays a crucial role in promoting social justice and accelerating the process of sustainable development. Trade expansion serves as a key driver in empowering rural women and increasing their economic participation. In recent years, many developing countries have adopted trade liberalization policies to create new employment opportunities for women. However, in Iran, most research has focused on the impact of exports on overall employment, while the effects of trade liberalization on rural women's employment have received less attention. This study aims to fill this research gap by examining the impact of trade liberalization on rural women's employment and demonstrating how trade policies can influence the economic participation of this segment of society. Analyzing this issue can lead to the formulation of strategies that not only leverage the opportunities created by trade expansion but also mitigate its potential negative effects on rural women's employment.

Methodology

The use of the ARDL approach in this research allows for the examination of the effects of trade openness and rural population on the participation rate of rural women over different time periods, providing a more comprehensive understanding of the dynamics of these relationships. Based on the findings of previous studies (Voumik et al., 2023; Nica et al., 2023), the significant variables have been identified and incorporated into the research model. In this regard, the conceptual model of the research is expressed in the following equation:

〖lEPW〗_t = f (L〖OP〗_t,〖LG〗_t,〖LPOP〗_t,〖LIN〗_t)





In this model, the dependent variable is the economic participation rate of rural women, denoted as (〖lEPW〗_t), while the main independent variable is trade openness (L〖OP〗_t). Additionally, the variables for agricultural sector growth (〖LG〗_t), rural population (〖LPOP〗_t), and inflation (〖LIN〗_t) are also included in the function. The inclusion of these variables in the model is based on economic theoretical foundations, as changes in each of these factors are expected to influence the economic participation of women. This research utilizes time series data from the period 1999 to 2021, which has been collected from reputable sources, including the Statistical Center of Iran, the Central Bank, and the Customs Administration of the Islamic Republic of Iran. For the analyses, Microfit and Eviews software have been employed.

Results and Discussion

This study examines the stationarity of the research variables using the Augmented Dickey-Fuller unit root test. The results indicate that the rural population variable is stationary, while other variables such as the economic participation rate of women, trade openness, agricultural value added, and inflation rate are stationary at first difference. These differences suggest that the ARDL model is suitable for analyzing both long-term and short-term relationships. The findings indicate that trade openness has a positive and significant impact on the economic participation rate of rural women in the long term. The coefficient for this variable is estimated at 0.27, which is significant at the 90% confidence level. However, it does not have a significant impact in the short term. Additionally, agricultural sector growth positively and significantly affects this rate in both the long and short terms. In contrast, the rural population and inflation rate have a negative impact on the economic participation rate of women in both the short and long terms, although the effect of inflation is not statistically significant. In the short term, some variables have a significant impact on the economic participation rate of women, but trade openness does not show a considerable effect. The error correction coefficient indicates that 39% of the short-term imbalance in the economic participation rate of women is corrected. The results of diagnostic tests confirm the hypothesis of homoscedasticity and no serial correlation in the disturbance terms. Furthermore, the values of the LM and F statistics suggest that the functional form of the model is correctly specified and that the distribution of disturbance terms is normal. The CUSUM and CUSUMSQ tests indicate that the estimated coefficients remain stable throughout the period under investigation, and the model possesses the necessary structural stability.

Conclusion and Recommendations

The findings of the research indicate that, in the long term, an increase in trade openness has a positive and significant impact on the economic participation rate of rural women. This increase in trade can create new job opportunities in agriculture, handicrafts, and export-related services. Furthermore, with the expansion of consumer markets and the growing demand for products made by rural women, their position in economic activities is strengthened. Trade development also facilitates the growth of women's job skills and their entry into competitive markets through investments in infrastructure, technology, and education. Additionally, economic and demographic factors significantly affect the economic participation rate of rural women. The growth of the agricultural sector positively impacts women's employment, highlighting the importance of sustainable agricultural development. Conversely, the rural population negatively affects women's participation, which may be due to competition in the labor market and traditional gender role patterns. Moreover, inflation rates have a negative effect on women's economic participation, although this impact is not statistically significant. In the short term, trade openness does not have a significant effect on women's participation, likely due to the time required for economic and social structures to adapt to trade developments and the need to enhance women's skills and capabilities. Based on the research findings, policymakers can create opportunities for rural women to benefit from trade by implementing supportive measures and structural reforms. These measures include increasing investment in vocational training, establishing financial funds specifically for women entrepreneurs, developing transportation and communication infrastructure, and forming cooperative networks. Additionally, designing trade policies with gender considerations and supporting local supply chains that involve women can help mitigate the negative consequences of global competition. Developing export markets for products produced by rural women and facilitating trade processes are also strategies that can strengthen their economic participation.

Keywords

• Rural Women,, Women'
• s economic, participation, trade,, model ARDL

Main Subjects

• economics