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Does Corruption Discourage More Female Entrepreneurs from Applying for Credit?

Author

Listed:
  • Jean-Christophe Statnik

    (LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille)

  • Thi-Le-Giang Vu

    (LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille)

  • Laurent Weill

    (EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School - UNISTRA - Université de Strasbourg, IEP Strasbourg - Sciences Po Srasbourg - Institut d'études politiques de Strasbourg - UNISTRA - Université de Strasbourg)

Abstract

There is evidence of a gender gap in access to finance. In this paper, we test the hypothesis that corruption discourages more female than male entrepreneurs from applying for credit. We use data on access to credit and corruption at the firm level for a large dataset of firms from 68 countries worldwide. We demonstrate that female entrepreneurs are more discouraged by corruption to ask for credit than male borrowers. We find evidence for two explanations for the gendered impact of corruption on borrower discouragement: women have less experience in management than men and as such can have less experience to deal with corruption, and gender inequality in society enhances the discouragement of female borrowers. Thus, our findings provide evidence that corruption enhances the gender gap in access to finance, enhancing gender inequality in participation in economic activity.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Christophe Statnik & Thi-Le-Giang Vu & Laurent Weill, 2022. "Does Corruption Discourage More Female Entrepreneurs from Applying for Credit?," Post-Print hal-04410252, HAL.
    • Handle: RePEc:hal:journl:hal-04410252
    DOI: 10.1057/s41294-022-00184-5
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    Cited by:

    1. is not listed on IDEAS
    2. Joshua D. Ammons & Shishir Shakya, 2024. "Revolutions and corruption," Public Choice, Springer, vol. 201(1), pages 355-376, October.
    3. Oguzhan Dincer & Gary Hoover, 2025. "Does corruption discriminate? Racial opportunity gap in the United States," Southern Economic Journal, John Wiley & Sons, vol. 91(3), pages 768-779, January.

    More about this item

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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