The Impact of Corruption on Smes' Access to Finance: Evidence using Firm-Level Survey Data from Developing Countries

Amin, Mohammad; Motta, Vctor

doi:10.1596/1813-9450-9812

Cited by 5 publications

(7 citation statements)

References 50 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In this case, having a female top manager is associated with a decrease of 38.4% in total annual sales, while the high number of competitors is associated with 58.2% reduction in total annual sales. Our empirical results con rm the ndings of Amin and Soh [31], De Rosa et al [30] and Amin and Motta [32] on much larger negative effect of corruption on rm growth for rms. Although corruption is argued to 'grease the wheels' for rms having relatively easier access to nance, but 'sands the wheels' of rms facing high level of nancial constraints [33], when systemic impacts of corruption on growth and longterm distortions as well as adverse effects on poverty and inequality are considered, it results in more harm than good [34,35].…”

Section: Variablessupporting

confidence: 90%

Does corruption affect private firm performance in Uzbekistan?

Suyunov

Amanova

2022

Preprint

View full text Add to dashboard Cite

The study investigates the impact of corruption on private firm performance in Uzbekistan. The results point up a negative relationship between corruption and firms performance in Uzbekistan. We found the perceived corruption deteriorates firms’ performance and decreases firms’ total annual sales by 28.8% in private firms in Uzbekistan. The study enriches existing empirical studies examining the effect of corruption on firm performance in the context of various countries and regions.

show abstract

Section: Variablessupporting

confidence: 90%

Does corruption affect private firm performance in Uzbekistan?

Suyunov

Amanova

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…While analyzing the business environment effect on income inequality, important omitted factors such as corruption, political stability and institutions might explain the correlation in each region. Corruption affects small and medium-sized enterprises by hindering access to finance, lowering profits, increasing bankruptcy chances, creating uncertainty about the firm's future profit and exacerbating the asymmetric information problem between borrowers and lenders (Amin and Motta, 2021). We proxy corruption from the ES by the percentage of firms identifying corruption as the main constraint.…”

Section: Resultsmentioning

confidence: 99%

Financial sector development, trade and income inequality: regional perspectives using evidence from macro and firm-specific data

Ashenafi

Dong²

2022

JES

View full text Add to dashboard Cite

PurposeThe purpose of this study is to firstly, find out does the relationship between finance, trade and income inequality provides matching evidence using the macro- and firm-level data? Secondly, whether a causal relationship from the firm-specific data can be established.Design/methodology/approachThe authors employed a panel data fixed effect regression and two-stage least square (2sls) using key instruments. Their analysis is conducted based on a sub-sample analysis that emphasizes Latin America Region (LAR), Africa (AFR) and Asia by merging South Asia, East Asia and Pacific Regions (SEAR). These areas are characterized by an unequal society represented by a mounting gini index (Robilliard, 2020; De Rosa et al. 2020). Accordingly, the authors estimated a comparable model to unfold the impact of finance and trade. Besides, the authors exploited the interaction between their predictors with labor productivity and ownership structure to claim the difference between the results using the two data sets. The effort to establish a causal relationship from the combined firm-level data challenges the current literature that leans towards either macro or micro perspectives.FindingsThe result obtained from macro-level data shows that while financial development widens income inequality, the impact of trade on income inequality is negative. However, the estimation result from the combined firm-level data portrays that the proportion of investment financed by banks and trade widens income inequality. Given the contrasting result concerning trade, the authors test whether the firm-level evidence is causal following different identification strategies. The exercise shows that the correlation presented in the paper is causal. That challenges the current literature that falls short of providing firm-specific evidence.Social implicationsThe authors adds to a growing body of literature on finance, trade and income inequality by paying due emphasis on firms from 2006 to 2020. The authors show the private sector development effect on income inequality by linking topics from the firm and country-level data.Originality/valueThe authors extend the macro-level discussion and contribute to the existing literature by offering firm-specific evidence on the relationship between finance, trade and income inequality.

show abstract

“…Pr exit t + n = Pr(y = 1) = BusCons it , FirmCont it , FE it (5) Where Pr exit t + n is the probability that ith rm will exit the market at timet + n. BusCons stands for business constraints; FirmCont represents rm-level controls included in the model; and FE corresponds to industry, location, and year dummies ( xed effects). As often pointed out in microeconometric literature (e.g.…”

Section: { ( )mentioning

confidence: 99%

Business Constraints and Firm Exit in Developing Countries: Evidence from Nigeria

Orjiakor

2022

Preprint

View full text Add to dashboard Cite

This study examines the impact of business constraints on firm exit using harmonized dataset of panel firms from the World Bank Enterprise Survey in Nigeria. It applies a confirmatory methodology – factor analysis to aggregate 15 firm-level indicators of business constraints into an index scale and estimates firm likelihood of exit from the market using binary probit model. Findings suggest that firm exit in Nigeria is not determined by current level of constraints in the business environment; however, additional level of constraints will result to more firms exiting the market. This finding holds true in the entire model specifications; that is, with and without accounting for firms’ differences or demographics, the squared business constraint index has a significant positive association with firm exit. By implication, addressing constraints in the business environment can improve business survival prospect and in return contribute to national development. Therefore, it is imperative that policymakers in developing countries like Nigeria should gear more efforts towards improving business environment in their economies through carefully designed policies that can foster private sector development.

show abstract

The Impact of Corruption on Smes' Access to Finance: Evidence using Firm-Level Survey Data from Developing Countries

Cited by 5 publications

References 50 publications

Does corruption affect private firm performance in Uzbekistan?

Does corruption affect private firm performance in Uzbekistan?

Financial sector development, trade and income inequality: regional perspectives using evidence from macro and firm-specific data

Business Constraints and Firm Exit in Developing Countries: Evidence from Nigeria

Contact Info

Product

Resources

About