Determinants of gendered participation in domestic trade: evidence from Kenya 2023

Abstract

This paper examines how regulatory, owner-specific, firm-specific and support factors influence participation in domestic trade by Kenyan firms owned by men and women with a view to informing policy action. Data from the 2016 survey on micro, small, and medium enterprises supported empirical estimations. Two models were estimated using the probit regression. The first was on participation in domestic trade by firms owned by women, while the second was on participation in domestic trade by firms owned by men. I controlled endogeneity and heterogeneity using the control function approach. The findings revealed that firm size, access to credit, goodwill, firm registration status, and university education attainment were significant in influencing participation of Kenyan firms in domestic trade. The evidence indicates a need to mainstream gender issues in making of trade policy; and enforcement of laws guaranteeing women improved access to trade credit and property including land rights. Improving access to incubation and capacity building support among female-owned firms could drive growth, specialization, and knowledge accumulation for enhanced participation in trade