Access to finance: The role of production level technology

• Robots and advanced technology in production increase firms access to external financing. • Technological advancements impact loan approval rates and large loans. • Advanced technology in production reduces the gender gap in loan approvals. • Possible mechanisms are increasing firm productivity and mitigating agency problems. The integration of robots and advanced technology in firm-level production processes represents a transformative shift in modern industrial practices. However, there is a lack of cumulative knowledge about the advancement of technology in the production processes affects mitigating the gender gap. Through the lens of financial accessibility, the study investigates how technological advancements influence firms' capacity to secure external financing and get large loans. Using the 2020 WorldBank Enterprises Survey data and a probit model for the analysis, our results suggest that industry robots and a high level of technology in production have the potential to reduce the gender gap in loan approvals. The findings of this have implications for decision-makers and policymakers, seeking to navigate the evolving landscape of technology-driven production and finance to enhance productivity and inclusivity.