Women’s Economic Empowerment, Financial Inclusion, and Development in Sub-Saharan Africa

Abstract: Through econometric analysis, this thesis explores the relationship between Women’s Economic Empowerment (WEE), financial inclusion and economic development in 30 sub-Saharan African countries, with a special focus on Benin, Cameroon, Nigeria and Guinea. WEE is defined as the women’s ability to independently earn and control their income, seize economic opportunities and exercise their agency. Building on the conceptual WEE framework established by Kabeer (1999) and extended by Buvinic et al. (2020), this research aims to explore the role of financial services on the nexus between agency (the process of WEE) and economic achievement (the outcome of WEE). Using multiple sources including the World Bank’s Global Financial Database and its Enterprise Survey as well as the USAID’s Demographic Health Survey, estimations are made for macro and micro levels, establishing a multidimensional perspective on WEE. My findings suggest that on the micro-level, financial inclusion and economic achievement have a strong positive association. This relationship cannot be confirmed on a macro level, suggesting WEE may be limited to country-specific analysis. Even though the process and outcome of WEE do not directly affect economic development, they act through female health and private-sector employment.