Improving the Economic Participation of Rural Women in Sub‐Saharan Africa Through Foreign Direct Investment: A Direct Analysis and Transmission Channels

ABSTRACT In sub‐Saharan Africa, rural women face various challenges that hinder their economic participation. Based on this observation, the objective of this article is to assess the contribution of foreign direct investment to the economic participation of rural women in a panel of 39 sub‐Saharan African countries between 2005 and 2020. The analysis employs both the generalized least squares and the generalized method of moments techniques. The findings indicate that foreign direct investment positively influences the economic participation of rural women. Furthermore, mediation analysis reveals that government public spending serves as a key channel through which foreign direct investment enhances rural women's economic engagement. Based on these results, policymakers are encouraged to promote investment‐friendly environments and allocate public funds strategically—especially toward infrastructure projects such as schools and roads that directly benefit rural communities. Additionally, decentralizing the delivery of public programs can improve their effectiveness in reaching and empowering rural women.