IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v50y2014i1p81-96.html
   My bibliography  Save this article

The Myth of Female Credit Discrimination in African Manufacturing

Author

Listed:
  • Henrik Hansen
  • John Rand

Abstract

We examine credit constraint differentials between male and female manufacturing entrepreneurs using firm data from 16 sub-Saharan Africa countries. Small enterprises owned by female entrepreneurs are less likely to be credit constrained compared to their male counterparts, while this is reversed for medium-sized enterprises. A generalised Oaxaca-Blinder decomposition shows that the gap is predominantly a pure gender effect. We argue that this finding is mainly due to female favouritism in loans to micro and small firms because the gap is reversed for medium-sized enterprises and because we find no sign of superior female entrepreneurial performance in observable indicators.

Suggested Citation

  • Henrik Hansen & John Rand, 2014. "The Myth of Female Credit Discrimination in African Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 50(1), pages 81-96, January.
  • Handle: RePEc:taf:jdevst:v:50:y:2014:i:1:p:81-96
    DOI: 10.1080/00220388.2013.849337
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220388.2013.849337
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fairlie, Robert W., 2003. "An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models," Center Discussion Papers 28425, Yale University, Economic Growth Center.
    2. Bruce Byiers & John Rand & Finn Tarp & Jeanet Bentzen, 2010. "Credit demand in Mozambican manufacturing," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(1), pages 37-55.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nirosha Hewa Wellalage & Stuart Locke & Helen Samujh, 2019. "Corruption, Gender and Credit Constraints: Evidence from South Asian SMEs," Journal of Business Ethics, Springer, vol. 159(1), pages 267-280, September.
    2. John Rand, 2017. "Are politically connected firms less constrained in credit markets?," WIDER Working Paper Series 200, World Institute for Development Economic Research (UNU-WIDER).
    3. Pham, Tho & Talavera, Oleksandr, 2018. "Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam," World Development, Elsevier, vol. 102(C), pages 228-242.
    4. Andrea F. Presbitero & Roberta Rabellotti, 2016. "The Determinants of Firm Access to Credit in Latin America: Micro Characteristics and Market Structure," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 45(3), pages 445-472, November.
    5. Pham, Tho & Talavera, Oleksandr, 2018. "Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam," World Development, Elsevier, vol. 102(C), pages 228-242.
    6. Aparna Gosavi, 2017. "Use of the Internet and its Impact on Productivity and Sales Growth in Female-Owned Firms: Evidence from India," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(2), pages 155-178.
    7. John Rand, 2017. "Are politically connected firms less constrained in credit markets?," WIDER Working Paper Series wp-2017-200, World Institute for Development Economic Research (UNU-WIDER).
    8. Aristei, David & Gallo, Manuela, 2016. "Does gender matter for firms' access to credit? Evidence from international data," Finance Research Letters, Elsevier, vol. 18(C), pages 67-75.
    9. Bailey, Rachel & Hartarska, Valentina, 2017. "Women's Property Rights and Outreach of Microfinance Institutions Targeting Women," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253159, Southern Agricultural Economics Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:50:y:2014:i:1:p:81-96. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.