Financial Access and Firm Productivity in Sub-Saharan Africa

Godfred Alufar Bokpin, Charles Ackah, Mark Edem Kunawotor

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)

Abstract

The paper investigates the effect of access to finance on the productivity of manufacturing firms in Sub-Saharan Africa. With the aid of the Semi-parametric approach by Levinsohn and Petrin, findings reveal that access to a cost-effective line of credit/loan or an overdraft facility has a positive effect on firm productivity. The study, therefore, concludes that it is of outmost benefit for firms to acquire credit facilities for more productive projects and that the credit constraints firms in Africa face should be significantly relaxed.

Original languageEnglish
Pages (from-to)210-226
Number of pages17
JournalJournal of African Business
Volume19
Issue number2
DOIs
Publication statusPublished - 3 Apr 2018

Keywords

  • Financial access
  • TFP
  • productivity

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