The Myth of Female Credit Discrimination in African Manufacturing

TY - JOUR

T1 - The Myth of Female Credit Discrimination in African Manufacturing

AU - Hansen, Henrik

AU - Rand, John

PY - 2014/1

Y1 - 2014/1

N2 - 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.

AB - 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.

U2 - 10.1080/00220388.2013.849337

DO - 10.1080/00220388.2013.849337

M3 - Journal article

SN - 0022-0388

VL - 50

SP - 81

EP - 96

JO - Journal of Development Studies

JF - Journal of Development Studies

IS - 1

ER -