Ümmühan AKHİSAR

Enver Alper GÜVEL

One of the most important factors affecting and accelerating the social, cultural and economic  development of a country is the education level of women. The purpose of the present study was to examine whether women’s education levels affect foreign direct investment in a country. The relationship between women’s education rate and economic growth rate and human development index was investigated by using the Panel Causality Analysis. The percentages of educated women for the period 1999-2022 were taken annually for 22 OECD countries (Australia, Belgium, Germany, Austria, Czech, Denmark, Norway, Estonia, Netherlands, Italy, Greece, Finland, Poland, France, Japan, Mexico, Hungary, South Korea, Spain, Sweden, Slovenia, Portugal). Economic growth rate and human development indices were included in the models as the control variables. Before the Panel Causality Analysis was applied to test the models, whether there was a cross-sectional dependence in the data was evaluated with the Peseran Caled LM Test and the Peseran CD Test. The Dumitrescu and Hurlin causality test was used after determining cross-sectional dependence and unit root existence. According to the results of the analyses, a one-way causality relationship was detected between foreign direct investment in and out of a country and the education rate of women. The findings also show that there was a bidirectional causality relationship between women’s education rate and human development index. The increase in the education rate of women and the increase in the human development index were considered important in attracting foreign direct investment.

Keywords: Women’s Education Rate, Foreign Direct Investment, Panel Causality Analysis.