Female labour force participation rate and economic growth in sub-Saharan Africa: “a liability or an asset”

Abstract

PurposeThis paper aimed examining the contribution of female labour force participation rate on economic growth in the sub-Saharan Africa during the period of 1991–2019.Design/methodology/approachThe study employed a sample of 42 sub-Sahara African countries using annual data from the World Bank development indicators. The long-run causal effect of female labour force and economic growth was analysed using the Autoregressive Distributed Lag model and Granger causality test for causality and direction since the variables did not have the same order of integration.FindingsThe estimated results indicate that a long-run causal relationship exists between female labour force and economic growth in sub-Sahara Africa and the direction of causality is unidirectional running from economic growth to female labour force. The results also showed that female labour force participation rate negatively and significantly contributes to economic growth (GDP) is sub-Saharan Africa in the long run with an insignificantly negative contribution in the short run hence a liability.Research limitations/implicationsThe author recommends the promotion of women's economic empowerment to encourage female labour force participation to increase economic growth in the entire sub-Saharan region.Practical implicationsThis paper adds to existing literature by using more comprehensive and up to econometric analysis and variables. This paper also makes further recommendation on how female labour force participation can boost economic growth in sub-Saharan Africa (SSA).Originality/valueThis paper adds to existing literature by using more comprehensive and up to econometric analysis and variables. This paper also makes further recommendation on how female labour force participation can boost economic growth in SSA.