Gender discrimination in access to credit: are women-led SMEs rejected more than men-led?

Abstract

Despite significant efforts of the Vietnamese government, the issue of gender discrimination in access to credit is still a major concern. This paper uses the zero-inflated negative binomial regression model for count panel data of small and medium enterprises in Vietnam to examine the issue across industries and firm sizes over time. Results indicate that women-led enterprises have a 34% higher likelihood of loans being denied than men-led firms. The situation is even more serious depending on industry and macropolicy. For example, the gap in the likelihood of loans being denied between women-led enterprises and their men-led counterparts increases to 67% in male-intensive industries and 71% in periods of tight monetary policy. In addition, firm size and location determine the probability of formal loan rejection.