Abstract

Prior research shows that corruption negatively affects corporate investment in large firms. However, we posit that this effect may be opposite in the context of SMEs. This paper investigates the relationship between local corruption and SME investment in a transition economy. With a sample of 262,767 observations, we document that local corruption is positively related to both SME investment expenditure and investment efficiency.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call