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From demand over self-exclusion to access-the role of social capital in firms' credit journey: Evidence from Mozambican manufacturing firms, 2012-22

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  • Hilário Muchabel
  • Hanna Berkel

Abstract

Rather than treating access to formal credit as a single binary outcome, we develop a credit-journey framework that distinguishes credit demand, application versus self-exclusion among demanding firms, and access among applying firms. We examine how different types of social capital are associated with progression at each stage. Drawing on three rounds of panel data on Mozambican manufacturing firms from 2012 to 2022, we estimate Mundlak correlated random-effects logit models.

Suggested Citation

  • Hilário Muchabel & Hanna Berkel, 2026. "From demand over self-exclusion to access-the role of social capital in firms' credit journey: Evidence from Mozambican manufacturing firms, 2012-22," WIDER Working Paper Series wp-2026-109, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2026-109
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    References listed on IDEAS

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    1. Kon, Y & Storey, D J, 2003. "A Theory of Discouraged Borrowers," Small Business Economics, Springer, vol. 21(1), pages 37-49, August.
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