The effects of international remittances on gender inequality and the mediating role of female human development in developing countries

This study examines the impact of international remittances on gender inequality in 111 developing countries from 2000 to 2021, highlighting their social role within the global economy. While remittances serve as a vital source of external funding that shapes economic structures in developing countries, their potential to reduce gender inequality remains underexplored. Using the Generalized Method of Moments and Lewbel (2012) estimators to address endogeneity, we find that the effects of remittances on gender inequality vary by national income level and human development index. Specifically, remittances more effectively narrow the gender gap in lower-income countries and those with lower levels of human development. Our findings further reveal that female human development, via improvements in women’s education, health, and income, serves as a key channel through which remittances reduce gender inequality. This study thereby contributes to global discussions on economic equality and guides targeted policy frameworks aimed at achieving gender parity.