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Access to Financing as a Barrier to Trade: Evidence From Mauritius

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  • Harshana Kasseeah
  • Vinaye Dey Ancharaz
  • Verena Tandrayen-Ragoobur

Abstract

Access to credit is essential for the development and growth of firms. For a small open economy like Mauritius, the ability of firms to enter export markets is essential for their growth and development, given that the size of the local market is quite limited. To increase sales and profitability, firms have to export. However, there are several costs that are involved when firms enter an export market. In many cases, finance becomes an essential factor that influences firms' ability to export. These authors investigate whether the main constraint that firms in Mauritius face is access to finance and try to understand how firms overcome financial barriers. Given the limitations of existing methods to estimate financing constraints directly from firm-level accounting data, the results based on survey data are an important contribution in improving understanding of firms' financing obstacles to exporting and how they overcome these barriers.

Suggested Citation

  • Harshana Kasseeah & Vinaye Dey Ancharaz & Verena Tandrayen-Ragoobur, 2013. "Access to Financing as a Barrier to Trade: Evidence From Mauritius," Journal of African Business, Taylor & Francis Journals, vol. 14(3), pages 171-185, December.
    • Handle: RePEc:taf:wjabxx:v:14:y:2013:i:3:p:171-185
    DOI: 10.1080/15228916.2013.844032
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    References listed on IDEAS

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    Cited by:

    1. Ragoobur, Verena Tandrayen & Tengur, Neha Devi & Seewooruttun, Bhooteshta, 2021. "South-South Trade: The Potential for Mauritius," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(3), pages 45-65, September.
    2. Indranarain Ramlall & Faadilah Mamode, 2017. "A Critical Assessment of Basel III and its Implications on the Mauritian Banking Sector," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 70-101, January.
    3. Shujaat Naeem Azmi & Shakeb Akhtar, 2023. "Interactions of services export, financial development and growth: evidence from India," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4709-4724, October.

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