The Impact of Export Status on Access to Finance by Firms in Southern African
The impact of export status on access to finance by firms is a widely debated subject in economic literature and policy discussions, yet empirical evidence remains inconclusive. The objective of this study is to explore how export status affects firms' access to finance. World Bank Enterprises Surveys (WBES) data for 5,960 firms in 13 Southern African Development Community (SADC) economies spanning the period 2010-2022 is utilized, together with data from World Development Indicators (WDI) and World Governance Indicators (WGI). The study employs two measures of access to finance: a subjective measure based on firms' perceptions of financial obstacles and an objective measure regarding access to overdraft facilities. Ordered probit and standard probit models are used to obtain the results. Both regression analyses reveal a positive relationship between export status and access to finance. This suggests that exporting firms have greater access to finance than non-exporting firms. The findings call for policy recommendations aimed at fostering initiatives to promote export activities among firms in the SADC region, as this is linked to improved access to finance, which in turn may promote firm growth through operations expansion and other investments.