Globalization and Women's Employability in Sub-Saharan Africa

Abstract

The objective of this paper is to analyze the effects of globalization on female employment in sub-Saharan Africa (SSA). The generalized method of moments (GMM) estimator was used in the econometric approach based on panel data from 39 sub-Saharan African countries covering the period 1995-2018. For further analysis, the sample was divided into four subgroups of regions including Central, Eastern, Western and Southern regions of sub-Saharan Africa. The results of the estimations reveal that globalization measured by the rate of openness and the flow of foreign direct investment significantly affects women's employment. This effect is positive for the openness rate and negative for foreign direct investment. This can be explained by the high representation of women in the informal sector whose main activity is trade. The results also show a significant effect of socio-economic variables, particularly the gross domestic product. Policymakers, in their efforts to stimulate economic growth, must put in place policies and programs that promote trade liberalization and women's empowerment.(original abstract)