Women’s empowerment in Africa faces challenges in driving significant growth due to various factors. However, there may be common channels through which it can influence inclusive growth. This article explores the thresholds at which women’s empowerment shifts its impact on inclusive growth via these channels across Africa.
This study uses panel data from 41 African countries covering the period 1990 to 2020. The analysis employs Driscoll–Kraay standard error estimators and fixed-effects instrumental variable methods. To ensure the robustness of the results, panel smooth transition regression (PSTR) models are also applied.
The results show that limited public sector contributions to financial development only enhance inclusive growth when women’s labor force participation reaches at least 69%. The PSTR models further reveal that transitions in women’s empowerment across regimes are abrupt, with thresholds of 65.92% for employability and 73% for labor force participation needed to meaningfully improve inclusive growth.
The study suggests that sub-Saharan African countries should promote financial policies for access to bank credit specifically linked to gender, in addition to women’s access to the agricultural sector.
This article identifies key thresholds beyond which women’s empowerment can positively influence growth in Africa. It offers a methodological contribution by extending existing research on the economic importance of women’s participation.
