Natural resource rents and public spending on education in Africa: Does women's political empowerment matter?

Abstract

The increase in the number of women in political office is one of the most significant social trends of recent decades. Although still underrepresented, women's participation in decision-making bodies is increasing. This paper analyzes the moderating effect of women's political empowerment on the relationship between natural resource rents and public spending on education in a sample of 47 African countries over the period 2003–2020. This study employs several recent methods to effectively address the endogeneity issue, including the Generalized Method of Moments in System (GMM-S) and the Two-stage Instrumental Variables (2SIV) approach. Overall, the results show that natural resource rents reduce public spending on education, but their interaction with the index of women's political empowerment in composite and disaggregated form increases public spending on education in Africa. These results are tested at four levels of robustness, including the inclusion of additional control variables, the exclusion of outliers, and the use of alternative dependent and independent variables. We suggest improving the representation of women in African political decision-making. This could include quotas for women in decision-making bodies, mentoring programs for women leaders, and financial incentives for political parties that promote women's participation. Steps must also be taken to address structural barriers that prevent women from fully participating in political life, such as discrimination and violence against women.