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Financial Inclusion and Foreign Market Participation of Firms: A Quasi-experiment from Nigeria

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Financing Sustainable Development in Africa

Abstract

This study uses the matching technique to explore the impact of financial inclusion on the export capacity of manufacturing firms in Nigeria. We identified firms that have either had access to over 50% of their working capital financed through borrowing from the bank, have an overdraft facility to finance their operation, or have a line of credit or loan from a financial institution, and used this classification to estimate the propensity score matching. Data was sourced from the 2014/2015 enterprise survey of the World Bank. From the matching estimation, we find that whereas firms export increase as a result of access to financial services, the extent differs in relation to whether the firms are located in central business enclaves. These results are interpreted as showing that access to financial services increases firms’ export capacity; however, the impact differs depending on the firms’ location.

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Author information

Authors and Affiliations

  1. School of Business, Covenant University, Ota, Nigeria

    Uchenna R. Efobi

  2. North-West University, Potchefstroom, South Africa

    Emmanuel Orkoh

  3. Federal University of Agriculture, Abeokuta, Ogun State, Nigeria

    Scholastica Atata

Authors
  1. Uchenna R. Efobi
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  2. Emmanuel Orkoh
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  3. Scholastica Atata
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Editor information

Editors and Affiliations

  1. Covenant University, Ota, Nigeria

    Uchenna R. Efobi

  2. African Governance and Development Institute, Yaoundé, Cameroon

    Simplice Asongu

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Efobi, U.R., Orkoh, E., Atata, S. (2018). Financial Inclusion and Foreign Market Participation of Firms: A Quasi-experiment from Nigeria. In: Efobi, U., Asongu, S. (eds) Financing Sustainable Development in Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-78843-2_3

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  • DOI: https://doi.org/10.1007/978-3-319-78843-2_3

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-78842-5

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