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

  • Uchenna R. Efobi
  • Emmanuel Orkoh
  • Scholastica Atata


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.

JEL Codes

B17 D22 E5 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Uchenna R. Efobi
    • 1
  • Emmanuel Orkoh
    • 2
  • Scholastica Atata
    • 3
  1. 1.School of BusinessCovenant UniversityOtaNigeria
  2. 2.North-West UniversityPotchefstroomSouth Africa
  3. 3.Federal University of AgricultureAbeokutaNigeria

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