Female Labor Force Participation and Uganda’s Economic Growth

Abstract

This comprehensive study explores the impact of various female labor force participation indicators on Uganda's economic growth, encompassing participation rate, educational levels, and fertility rate while considering confounding factors like capital formation and inflation. Utilizing a quantitative approach and a causal relationship research design, the study employs the ARDL (3, 3, 1, 1, 1, 2) model on quarterly data from 1990 to 2021. Results reveal a significant adverse short-term causal impact of the female labor force participation rate on economic growth, with no such effect in the long term. The educational levels and fertility rate exhibit statistically insignificant impacts in both short and long terms. The findings suggest a prevailing trend of female labor contributing predominantly to labor-intensive agriculture and the informal economy, without a noticeable shift to more lucrative sectors over the long run. Additionally, the study underscores the potential for short-term economic growth through birth control measures and policies enhancing physical capital stocks, contributing to our understanding of Uganda's economic progress within the neoclassical and U-shape development frameworks.