Governance and information technology for female labour force participation in the African Continental Free Trade Area

The motivation of the present study is to complement the extant literature by assessing the relevance of governance and information technology in how African trade affects female labour force participation. The study focuses on 48 African countries using data for the period 1996–2021. An adopted empirical strategy is the fixed effects regressions that are designed to address concerns for simultaneity and the unobserved heterogeneity. The fractional probit model based on the pooled Bernoulli quasi-maximum likelihood method is also employed. The following main findings are established. First, governance moderates intra-African trade to engender positive synergies on female labour force participation. The positive synergies are apparent from the overall quality of institutions, government effectiveness and the rule of law. Second, information technology does not significantly moderate intra-African trade to affect female labour force participation. The established findings from fixed effects regressions are robust to fractional probit model estimations. The findings are relevant in informing policy makers on how governance can be used to moderate the influence of African trade in promoting female labour force participation. Policy implications are discussed.