Brancati, Emanuele; Di Maio, Michele; Rahman, Aminur - 2022
This paper documents the link between finance and informal competition. Using longitudinal firm-level data, we show … that formal firms that are more exposed to the competition of informal firms are less likely to apply for a bank loan. This … result is not due to sample selection, omitted variable bias, or reverse causality, and it is robust to different econometric …