Building on the theme of the first essay, my second essay qBribery and Firm Borrowing Conditionsq examines the channels through which bribery constrains firms' operations and growth. Since corruption induces uncertainty into the operational environment, it can potentially be a barrier to firms' access to external finance by lowering the projects' expected returns. Using firm-level data from the Business Environment and Entrepreneur Performance Surveys covering twenty-six transition economies, the study investigates whether a link exists between bribery and firms' borrowing conditions. Empirical results suggest that bribery leads to stringent borrowing conditions. In particular, in environments characterized by pervasive corruption, the probability of firms obtaining bank credit is lower; interest rates on which loans are made are higher; and loan repayment periods are generally shorter.Building on the theme of the first essay, my second essay aquot;Bribery and Firm Borrowing Conditionsaquot; examines the channels through which bribery constrains firmsa#39; operations and growth.
|Title||:||Essays in Firm-level Costs of Corruption and the Transmission of Monetary Policy Shocks to the Real Economy|
|Publisher||:||ProQuest - 2007|