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Gender-Trade Issues: The Effect of AGOA on Female Participation in African Labour Markets

Author

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  • Rorisang Lesaoana
  • Leseko Makhetha

Abstract

Purpose: This study’s primal aim is to investigate the effect of the African Growth and Opportunity Act (AGOA) on one of the gendered outcomes; female labour force participation rate (FLFPR) within the Sub-Saharan region. This study adds to the literature by insinuating the provision of new insights about one of the trade policies that were primarily tailored to trade liberalisation among others, but have gender inclusion spillover effects, especially by utilising the pre-and post-AGOA dataset. Design/Methodology/Approach: While utilising a censorious annual data for 33 countries to sort out the before-and-after time periods from a wide span of 1990 to 2019, this study adopted a hybrid model of the Difference-in-Differences (DID) technique and a non-iterative reweighting procedure: Entropy Balancing (EB). Despite improving the external validity by employing a censorious annual data set, the DID technique counters the selection bias since AGOA membership is not random. Furthermore, the EB takes care of the covariates balancing, thereby improving precision by constructing a "statistically" similar control group. Findings: The findings reveal that AGOA member countries in the region, unlike other non-member counterparts significantly experience improved female labour force participation rates of about 10.8%. That is, AGOA has a positive effect on FLFPR. Practical Implications: This study suggests that policy makers should be inclined to policies that will enable AGOA beneficiary countries to continuously retain their eligibility status. First, improve the rule of law and governance, as a step to combat corruption. Lastly, ensuring that required quotas are met, or at least significant progress is made to reach thereof. Originality/value: Although the effect of AGOA has been studied earlier, the originality of this study stems from the adoption of the hybrid methods to robustly teace out the pure effect of AGOA.

Suggested Citation

  • Rorisang Lesaoana & Leseko Makhetha, 2024. "Gender-Trade Issues: The Effect of AGOA on Female Participation in African Labour Markets," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 155-175.
    • Handle: RePEc:ers:ijebaa:v:xii:y:2024:i:1:p:155-175
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade Liberalisation; Labour Force Participation; Comparative Advantage; Difference-in-differences; Entropy Balancing.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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