The Moderating Effect of Access to Finance on the Relationship between Gender and Export Propensity

Based on a sample of more than 13,000 firms from the transition region, this research paper investigates the linkages between the gender of the top manager, access to finance, and a firm’s propensity to participate in international markets through exporting. Controlling for firm and sector characteristics, a series of empirical analyses are conducted to assess whether firms led by women are less likely to engage in exporting activities than those led by men. The potential moderating effect of access to finance on this nexus is also tested. The estimated results reveal that, firms run by women exhibit a lower probability to export compared to those run by men. However, this pattern shifts when the moderating effect of access to finance is taken into account. In particular, the propensity to export for firms managed by women increases significantly upon gaining access to external finance. The obtained evidence suggests policy actions that could support and facilitate access to finance for women entrepreneurs, thereby increasing their engagement in international markets