The Myth of Female Credit Discrimination in African Manufacturing

Henrik Hansen and John Rand

Journal of Development Studies, 2014, vol. 50, issue 1, 81-96

Abstract: 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.

Date: 2014
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DOI: 10.1080/00220388.2013.849337

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