Women’s Participation in ICT and Regional Development: A Two-Way Fixed Effects Approach

Péter Karácsony, Gulbakhyt Olzhebayeva

Qainar Journal of Social Science, 2026

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DOI 10.58732/2958-7212-2026-1-25-45
Data confidence 70 medium
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Abstract

Women's participation in the information and communication technology (hereinafter - ICT) sector It is increasingly seen as an essential element of inclusive digital transformation. This study examines the impact of digitalization and gender-related indicators on regional economic growth and evaluates whether women’s participation in ICT contributes to more inclusive development patterns. The analysis is based on a balanced panel dataset of 16 regions for the period 2010–2024. A pooled OLS model, a two-way fixed effects specification, and robustness checks with clustered heteroskedasticity-robust standard errors are employed. Estimates of the two-factor model of fixed effects show that the wage level is the most stable determinant of regional economic growth (β = 1.330; p < 0.001), while investments in fixed assets retain marginal statistical significance (β = 0.126; p = 0.060). The human capital index shows a statistically significant negative internal effect (p < 0.001), while indicators of digitalization and gender variables turn out to be statistically insignificant. The results show that digitalization indicators and gender variables do not have a statistically significant intraregional impact on the gross regional product after taking into account regional and temporary fixed effects. At the same time, investments in fixed assets and wages are the most stable determinants of regional growth. Cluster analysis revealed four models of regional development — digital-service, industrial, agricultural and resource, which confirms the structural heterogeneity. The results show that digitalization by itself does not guarantee inclusive growth, and its economic effects are mediated by structural factors.