PublicDisclosureAuthorized PublicDisclosureAuthorized PolicyResearchWorkingPaper10667 AreGlobalValueChainsWomenFriendlyinDevelopingCountries? EvidencefromFirm-LevelData MarizeKallinyChahirZaki MiddleEastandNorthAfricaRegionOfficeoftheChiefEconomistJanuary2024 PolicyResearchWorkingPaper10667 Abstract Despitetheeffortsmadetoincreasewomen’sinclusionintheeconomy,theyarestillunderrepresentedintradeingeneralandinglobalvaluechainsinparticular.Thus,thispaperaimsatexaminingtheimpactofglobalvaluechainsonwomen’stradeparticipationasentrepreneursandemployees.Italsoanalyzeshowthiseffectismoderatedthroughexternal(genderprovisionsintradeagreements)andinternal(investmentclimatevariables)factors.Theanalysisusesfirm-leveldatafor154developingeconomiesandemergingmarketswithaspecialfocusontheMiddleEastandNorthAfricaregion,beingoneoftheregionswiththelowestfemalelaborforceparticipation.Themainfindingsshowthatglobalvaluechainsintegrationincreasesthelikelihoodofbeingafemaleownerandtheshareof femaleemployees,especiallyproductionones.Alessrobustnegativeeffectisfoundfortheimpactonbeingafemaletopmanager.Theseeffectsaremoderatedbytheinclusionofgenderprovisionsintradeagreementsandbythecharacter-isticsoftheinvestmentclimate(especiallytaxpolicy,accesstofinance,andcorruption).Theseresultsremainrobustaftercontrollingfortheendogeneityofglobalvaluechainsusinganinstrumentalvariableapproachandapropensityscoreestimationmethodwherethetreatmentisbeingpartofaglobalvaluechains.Thus,globalvaluechainscanbeperceivedasatoolthatboostswomen’sempowermentinemergingeconomies,especiallyintheMiddleEastandNorthAfricaregion. ThispaperisaproductoftheOfficeoftheChiefEconomist,MiddleEastandNorthAfricaRegion.ItispartofalargereffortbytheWorldBanktoprovideopenaccesstoitsresearchandmakeacontributiontodevelopmentpolicydiscussionsaroundtheworld.PolicyResearchWorkingPapersarealsopostedontheWebathttp://www.worldbank.org/prwp.Theauthorsmaybecontactedatchahir.zaki@feps.edu.eg. ThePolicyResearchWorkingPaperSeriesdisseminatesthefindingsofworkinprogresstoencouragetheexchangeofideasaboutdevelopmentissues.Anobjectiveoftheseriesistogetthefindingsoutquickly,evenifthepresentationsarelessthanfullypolished.Thepaperscarrythenamesoftheauthorsandshouldbecitedaccordingly.Thefindings,interpretations,andconclusionsexpressedinthispaperareentirelythoseoftheauthors.TheydonotnecessarilyrepresenttheviewsoftheInternationalBankforReconstructionandDevelopment/WorldBankanditsaffiliatedorganizations,orthoseoftheExecutiveDirectorsoftheWorldBankorthegovernmentstheyrepresent. ProducedbytheResearchSupportTeam AreGlobalValueChainsWomenFriendlyinDevelopingCountries? EvidencefromFirm-LevelData1 MarizeKalliny2ChahirZaki3 JELClassification:F12,F16,F23,J16 Keywords:GlobalValueChains,Gender,Empowerment,Firm-level,MENA 1TheauthorsgratefullyacknowledgethefinancialandanalyticalsupportfromtheOfficeoftheChiefEconomistfortheMiddleEastandNorthAfrica(MNACE)undertheregionalLaborandGenderResearchPrograms(TTLs:NellyElmallakhandNazmulChaudhury).Thefindings,interpretations,andconclusionsexpressedinthispaperareentirelythoseoftheauthors.TheydonotnecessarilyrepresenttheviewsoftheInternationalBankforReconstructionandDevelopment/WorldBankanditsaffiliatedorganizations,orthoseoftheExecutiveDirectorsoftheWorldBankorthegovernmentstheyrepresent.TheauthorsaregratefultoMhamedBenSaleh,EnricoMarvasiandtheanonymousrefereesforconstructivefeedback. 2PhDCandidateatUniversitéClermontAuvergne,CNRS,IRD,CERDI,F-63000Clermont-Ferrand,France.AssistantLecturerofEconomics,FacultyofEconomicsandPoliticalScience–CairoUniversity(onleave). Email:marize.kalliny@feps.edu.eg 3ChairedProfessorofEconomics,UniversityofOrléansandLabord’Economied’Orléans,EconomicResearchForumandEMANES.Email:chahir.zaki@univ-orleans.fr 1.Introduction Womenhavealwaysplayedasignificantandpivotalroleintheeconomythroughtheirremarkablepresenceinbusiness,agriculture,industryandeventhroughtheirunpaidcarework.Despitetheeffortsmadetoincreasewomen’sinclusionintheeconomy,around2.4billionwomendonothaveaccesstoequaleconomicopportunitiesasmenaccordingtotheWorldBank’sWomen,BusinessandtheLawreport(2022).Furthermore,basedonareportpublishedonwomenbytheUnitedNationsDevelopmentProgramme(UNDP),womenperform66%oftheworld’swork,produce50%ofthefood,butearnonly10%oftheincome.Inaddition,differentstagesoftheproductionprocessareincreasinglybeingfragmentedacrossdifferentcountriesthroughglobalvaluechains(GVCs),especiallyinemergingeconomies.Forthisreason,thisstudyattemptstoassesstheimpactofGVCsonwomen’sempowermentininternationaltrade. Indeed,inrecentyears,theworldhaswitnessedagrowinginterestintheimpactofglobalizationoneconomicpatternsingeneralandgenderequalityinparticular.AsignificantfocushasbeenonthegenderimpactofGVCsastheyhaveproventheirpowertogenerateemployment,drivedevelopment,andincreaseincome.Thesevaluechainscanhelpwomenbyprovidingmoreincomethatcansupporttheireconomicempowermentbutcanalsodowngradethemtopoorlypaidandundervaluedjobs.Hence,consideringgenderissuesandaddressingthemiscriticalinordertotakeadv