MPIA-12617 Macroeconomic implications of female entrepreneurs facing financial frictions to access to credit: a

Abstract

This research assesses the effects of financial frictions faced by female entrepreneurs on macroeconomics performances in Cameroon. We address this important issue, using a Dynamic Stochastic General Equilibrium model with financial micro-foundations. The model features two sectors such as, a production sector dominated by female entrepreneurs and a production sector dominated by male entrepreneurs. Financial frictions appear because entrepreneurs face collateral constraint when borrowing from the banking sector. The steady state and the calibration analysis demonstrate that the female sector is labor-intensive whereas male sector is capital intensive. But, when female sector are granted loans as much as the male sector, it performs better in term of value-added in GDP. The benchmark analysis reveals the complementary role of both sectors in sustaining economy activity when the conjuncture slumps. The Scenarios analysis emphasises the expansionary effect of the loosening financial constraint, with female entrepreneurs acting as main driver of the economy activity. Thus, institutional frameworks that relax collateral constraints, grant exemptions for enormous requirements, enforce properties right law, and promote transparency and credit-information sharing can make big inroads in alleviating borrowing constraints, increasing financial inclusion and enhancing macroeconomic outcomes.

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Members

Project leader: Thierry Kame

Project researchers: KENDO SANDRA | ADELE MICHELINE NGO BILONG | Martin Jaurès Ndzana Eloundou

Scientific mentors: Kevin Moran

Journal publication

No journal publications.

Working Papers

	Title	Modified	Size	Comments	Recommendations
	Macroeconomics implications of female entrepreneurs facing financial frictions to access to credit: A DSGE model approach in Cameroon	2016-01-21	1519.45KB	0	0

Policy Briefs

	Title	Modified	Size	Comments	Recommendations
	Macroeconomics implications of female entrepreneurs facing financial frictions in credit access: a DSGE model approach in Cameroon	2015-12-21	915.53KB	0	0

Final report

	Title	Modified	Size	Comments	Recommendations
		2015-06-29	2583.17KB	0	0

Proposal

	Title	Modified	Size	Comments	Recommendations
		2014-07-25	415.42KB	0	0