Unemployment, Inflation, Female Labor Force Participation and Economic Growth: Evidence from Developing Countries

Abstract

Unemployment and inflation may influence economic growth and development. Studies show that gross fixed capital formation, exports, and female labour force participation have positive and tremendous effects on economic growth. We have used data from 1991 to 2024 from selected developing countries. The economic growth was used as a dependent variable. However, unemployment, inflation, exports, gross fixed capital formation, and female labour force participation were used as explanatory variables. OLS result shows that unemployment affected economic growth negatively. Inflation has a positive effect on the economic growth of developing countries. The results also show that gross fixed capital formation, exports, and female labour force participation have enhanced economic growth in the developing countries. On the basis of the results, it is suggested that the Government should generate and provide more employment opportunities to all communities. A steady environment should be provided to increase investment, production, and exports. Females should be given more job opportunities in rural and urban areas. A stable economic and political environment will attract more prosperous businesses, growth, and development in developing countries.