Does Corruption Discourage More Female Entrepreneurs from Applying for Credit?

Jean-Christophe Statnik, Thi-Le Giang Vu and Laurent Weill
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Jean-Christophe Statnik: Université de Lille, Yncréa Lille
Thi-Le Giang Vu: Université de Lille

Working Papers of LaRGE Research Center from Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg

Abstract: There is evidence of a gender gap in access to finance. In this paper, we test the hypothesis that corruption discourages more female than male entrepreneurs from applying for credit. We use data on access to credit and corruption at the firm level for a large dataset of firms from 68 countries worldwide. We demonstrate that female entrepreneurs are more discouraged by corruption to ask for credit than male borrowers. We find evidence for two explanations for the gendered impact of corruption on borrower discouragement: women have less experience in management than men and as such can have less experience to deal with corruption, and gender inequality in society enhances the discouragement of female borrowers. Thus, our findings provide evidence that corruption enhances the gender gap in access to finance, enhancing gender inequality in participation in economic activity.

Keywords: gender; access to credit; borrower discouragement; corruption. (search for similar items in EconPapers)
JEL-codes: D73 G21 J16 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-ent, nep-fdg and nep-gen
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http://ifs.u-strasbg.fr/large/publications/2021/2021-05.pdf (application/pdf)

Related works:
Journal Article: Does Corruption Discourage More Female Entrepreneurs from Applying for Credit? (2023)
Working Paper: Does Corruption Discourage More Female Entrepreneurs from Applying for Credit? (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:lar:wpaper:2021-05

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