Nexus of Women’s Empowerment and Economic Growth in Saudi Arabia

Azharia Abdelbagi Elbushra (), Adam Elhag Ahmed, Nagat Ahmed Elmulthum and Ishtiag Faroug Abdalla
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Azharia Abdelbagi Elbushra: Department of Agribusiness and Consumer Sciences, College of Agriculture and Food Sciences, King Faisal University, Al Ahsa 31982, Saudi Arabia
Adam Elhag Ahmed: Department of Agribusiness and Consumer Sciences, College of Agriculture and Food Sciences, King Faisal University, Al Ahsa 31982, Saudi Arabia
Nagat Ahmed Elmulthum: Department of Agribusiness and Consumer Sciences, College of Agriculture and Food Sciences, King Faisal University, Al Ahsa 31982, Saudi Arabia
Ishtiag Faroug Abdalla: Department of Agribusiness and Consumer Sciences, College of Agriculture and Food Sciences, King Faisal University, Al Ahsa 31982, Saudi Arabia

Sustainability, 2025, vol. 17, issue 17, 1-19

Abstract: Saudi Arabia is actively boosting women’s labor force participation, exceeding 2022 targets to enhance human capital. The purpose of this study is to examine the nexus between women’s empowerment and economic growth using secondary data from 1997 to 2022. Empowerment was proxied by Saudi women employed in government, with Gross Domestic Product (GDP) and female B.Sc. holders used as explanatory variables. The result of the Johansen test depicts a long-run equilibrium relationship between these variables. The Vector Error Correction Model (VECM) revealed a significant negative short-term impact of GDP on women’s empowerment at the 5% level, while female graduates had a positive short-term effect. The model results indicated rapid adjustment, correcting about 71% of disequilibrium per period towards long-run equilibrium. Importantly, a significant positive long-run relationship exists between women’s empowerment and economic growth. Diagnostic tests confirmed the VECM’s reliability, reflected by normally distributed residuals, with no significant autocorrelation, and overall model stability. The study findings contribute valuable insights for policymakers and stakeholders striving to achieve gender equity and sustainable economic development. Moreover, qualitative methods could be employed in future research to enhance the comprehensive understanding of the cultural and social barriers to maximize the long-run virtuous cycle of empowerment and economic growth.

Keywords: women’s empowerment; economic growth; cointegration; vector error correction model; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:17:p:7949-:d:1741568

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