The synergy between governance and trade openness in promoting female economic inclusion in Sub-Saharan Africa

Abstract

The debate on the need for Sub-Saharan African (SSA) countries to increase female participation in the economic sector has intensified the coming into force of the African Continental Free Trade Area (AfCFTA) and good governance. This study investigates the joint effects of governance (comprising of political, economic and institutional governance) and trade openness on female economic participation in SSA. The study employs panel data of 42 countries in SSA for the period 1996–2020. The empirical strategy is the dynamic System Generalized Method of Moments (SGMM) estimation technique. The findings reveal that the single effect of trade openness on female economic participation is necessary but not sufficient. Hence, complementing trade openness with good governance further enhances female economic participation in SSA. In general, the joint effect of trade openness and good governance should be a concern for policy makers to promote female economic inclusion.