This paper investigates whether there is a gender bias in granting credit for businesses from Eastern Sub-Saharan Africa. It is first necessary to determine whether firms are credit-constrained. In order to identify the status of the firms with respect to credit, two recently introduced methods that can identify the credit-constrained status of firms are used. The paper uses World Bank’s Enterprise Survey Program data set from 2013 to investigate this question. The empirical results obtained, after controlling for a large number of firm-level characteristics and using country-level dummies, reveal that female-owned firms appear to have more access to credit than their male counterparts. The paper also shows that the female-owned firms in the region finance their capital according to the Pecking Order Hypothesis.
How to Cite
Gosavi A., (2019) “We Have Got Credit!”, American Review of Political Economy 13(2). doi: https://doi.org/10.38024/arpe.222