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Entrepreneurs' gender and financial constraints: evidence from international data

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Author Info
Alexander Muravyev () (DIW - Berlin)
Dorothea Schaefer () (DIW - Berlin and Free University of Berlin)
Oleksandr Talavera () (Aberdeen Business School and Kyiv School of Economics)

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Abstract

This paper studies gender discrimination against entrepreneurs by financial institutions. Based on the cross-country Business Environment and Enterprise Performance Survey (BEEPS) our analysis suggests that, compared to male-managed counterparts, female-managed firms are less likely to obtain a bank loan. In addition, we find that female entrepreneurs are charged higher interest rates when loan applications are approved. There is also some evidence that the gender differences in access to financing vanish with the level of financial development, which is consistent with the Becker-type discrimination. The results of our analysis are robust to a number of specification checks.

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File URL: http://www.kse.org.ua/RePEc/pdf/KSE_dp11.pdf
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File Function: August 2008
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Publisher Info
Paper provided by Kyiv School of Economics in its series Discussion Papers with number 11.

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Date of creation: Aug 2008
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Handle: RePEc:kse:dpaper:11

Note: Forthcoming in Journal of Comparative Economics
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Related research
Keywords: Entrepreneurship; financial constraints; gender; discrimination;

Other versions of this item:

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sabarwal, Shwetlena & Terrell, Katherine, 2008. "Does gender matter for firm performance ? evidence from Eastern Europe and Central Asia," Policy Research Working Paper Series 4705, The World Bank. [Downloadable!]
    Other versions:
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