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Access to Credit by Firms in Sub-Saharan Africa: How Relevant Is Gender?

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  • Elizabeth Asiedu
  • Isaac Kalonda-Kanyama
  • Leonce Ndikumana
  • Akwasi Nti-Addae

Abstract

The literature on the determinants of firms' financing constraints has paid little attention to gender as a determinant of access to finance. Using data for 34,342 firms from 90 developing countries, the paper analyzes the determinants of firms' financing constraints and assesses whether female-owned firms are more financially constrained than male-owned businesses. The results show that female-owned firms in sub-Saharan Africa are more likely to be financially constrained than male-owned firms, but there is no gender gap in other developing regions. The gender gap in sub-Saharan Africa is robust to variations in specifications and econometric estimation procedures.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 103 (2013)
Issue (Month): 3 (May)
Pages: 293-97

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Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:293-97

Note: DOI: 10.1257/aer.103.3.293
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Cited by:
  1. Claudia Piras & Andrea Filippo Presbitero & Roberta Rabellotti, 2013. "Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit," Mo.Fi.R. Working Papers 90, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  2. Hansen, Henrik & Rand, John, 2014. "Estimates of gender differences in firm’s access to credit in Sub-Saharan Africa," Economics Letters, Elsevier, vol. 123(3), pages 374-377.
  3. Addison, Tony & Singhal, Saurabh & Tarp, Finn, 2013. "Aid to Africa: The changing context," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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