Gender-Based Credit Constraints and Firm Performance in Cameroon
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Date
2020-06-30
Authors
Johannes, Tabi Atemnkeng
Adze, Ndam Romanus
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research consortium
Abstract
This paper revisits the empirical literature on gender and access to formal finance by
enterprises and examines the effect of financial constraints on firm performance in
Cameroon. Existing literature on the importance of gender of the firm’s owner as a
determinant of the firm’s access to finance is clouded with mixed findings. Based on
the objective measure of access to finance variable where firms are constrained if they
applied and were refused, including those that did not apply because they expected
to be refused. The analysis finds evidence that female-owned firms are less likely
to be credit-constrained once sample selection bias is accounted for. Furthermore,
unobservable heterogeneity does not explain gender difference in access to finance
while using a two stage least squares regression, no significant gender gap in firm
performance between male- and female-owned companies was found, though
financial constraint render firms to be less efficient.