 Access to Finance, Financial Development and Manufacturing Firms' Export: Insights from Enterprise Surveys in AfricaThe African Finance Journal, 2024, vol. 26, issue 2, 43-57 Abstract: For Africa to attain industrialization, it has to not only boost manufacturing output but also be able to penetrate foreign markets for its produce. Yet, the level of export penetration among African manufacturing firms is very modest, triggering the question: What determine the low level of African manufacturing exports? In this paper, we examine the role of access to finance and financial development in African manufacturing firms' decision to export. Unlike previous literature on trade-finance nexus for Africa, we use survey data during 2013-2018 period for a group of thirty (30) African countries, applying it to a Probit model of export participation and a Tobit model of export intensity. Our findings show that firms with greater access to finance have greater propensity and intensity to export, and firms located in financially more developed countries export more manufacturing produce. These results are robust to a host of different measures of access to finance and financial development, as well as controlling for possible endogeneity. Keywords: Access to Finance; Financial Development; Export; Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:26:y:2024:i:2:p:43-57 Access Statistics for this article More articles in The African Finance Journal from Africagrowth Institute Contact information at EDIRC. |
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