Public guarantee schemes, corruption and gender: a European SME-level analysis

Graziella Bonanno, Nadia Fiorino, Giampaolo Garzarelli and Stefania Patrizia Sonia Rossi

Applied Economics, 2020, vol. 52, issue 60, 6498-6513

Abstract: Does a corrupt politico-institutional environment affect the demand of public subsidies for credit access – so-called public guarantee schemes – by small and medium-sized enterprises (SMEs) helmed by female entrepreneurs? The paper tackles this question by using a large sample of European SMEs over 2010–2014 while also carefully addressing possible endogeneity issues. It provides robust evidence that, compared to their male counterparts, female entrepreneurs: (a) tend to demand more public subsidies, and (b) are more sensitive to the quality of the politico-institutional environment. The upshot is that a corrupt environment is not gender neutral: in light of ‘essential gender features,’ corruption negatively influences SMEs helmed by female entrepreneurs more than male ones.

Date: 2020
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DOI: 10.1080/00036846.2020.1798342

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