WOMEN’S PARTICIPATION IN THE LABOR MARKET AND ECONOMIC DEVELOPMENT: EVIDENCE FROM ECCAS AND ECOWAS COUNTRIES

This paper examines the relationship between women’s participation in the labor market and economic development in ECCAS and ECOWAS over the period 2006-2015 by using dynamic panel data model. The analysis is run from two different perspectives – on one hand, the relationship is investigated for a sample of 24 countries; and on the other hand – the evidence is disaggregated and the relationship is re-examined with two regional blocs (ECCAS, ECOWAS). The OLS, fixed effects model, instrumental IV and the generalized method of moments (GMM) estimator developed by Arellano and Bond (1991) are employed to evaluate and account for dynamic effects. The main results show that there is a U-shaped relationship between female labor force participation and the economic development for the encompassing 24 countries. The findings are important for ECCAS and ECOWAS countries policy makers to undertake effective policies that can boost female labor force participation and enhance economic growth in their countries.