Financial Literacy as a Catalyst for Women’s Economic Empowerment in the MENA Region: Evidence from a Structural Equation Model

Abstract

This study examines the role of financial literacy as a catalyst for women’s economic empowerment in the MENA region, focusing on its impact on financial performance through the mediating effects of autonomy and family support, as well as the moderating effects of male partners and employment type. Drawing on data from 515 women professionals across five MENA countries, the research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine both direct and indirect relationships among key variables. The findings reveal that financial literacy significantly enhances financial performance, primarily by fostering greater autonomy in financial decision-making. While parental and spousal support also contribute, their mediating effects are comparatively weaker. Moreover, the relationship between financial literacy and autonomy is moderated by employment type and the presence of male partners, with employed women and those in collaborative environments experiencing stronger gains in autonomy. These results underscore the importance of targeted financial education and autonomy-enhancing policies to support women’s economic advancement in culturally complex and economically volatile contexts. The study contributes to the literature on gender and development economics by offering empirical evidence from an under-researched region and provides actionable insights for policymakers, educators, and organizations aiming to promote inclusive economic growth.