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Abstract

This study examines how female tertiary education and climate change affect economic growth in a set of 33 chosen developing countries from around the world. Previous literature examines the relationship between gender inequality and economic growth and climate change and economic growth both theoretically and empirically, in this study empirical analysis of panel data set will be made using a cross section fixed effects model. Annual growth rate of female tertiary graduates with a ten-year lag, gross fixed capital formation, and gross domestic product growth rate with a one-year lag have been found to have a positive and significant effect on the economic growth rate for developing countries. A significant and positive relationship has been found between the annual growth rate of mean temperature and annual growth rate of gross domestic product where the annual growth rate of gross domestic product is the independent variable. Enrolment rates or years of schooling of primary and secondary levels have been used in previous literature as proxies for female education; in this study the annual growth rate of female tertiary graduates is used to highlight the importance of tertiary level education and graduate growth rate is used to provide better proxy for the completion of the whole period of study and not only enrolment. Additionally, climate change is usually included in economic models as a dependent variable, in this study an attempt to explore climate change as an independent variable is made to provide more insights into the nature of the relationship between climate change and economic growth.

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