This paper investigates corruption and tax evasion and their firm-level determinants across 25,000 firms in 57 countries, a large fraction of which are small and medium enterprises in developing countries. Firms that pay more bribes also evade more taxes. Corruption acts as a tax on innovation,...

This paper examines the financing of innovations in small and medium sized enterprises. In contrast to other existing studies, the focus is on the proportion of bank credits and internal funds as parts of innovation expenditures. The regression results indicate financing constraints due to...

To foster firm growth, it is now established that access to finance through well-functioning capital markets is a necessary pre-requisite. Moreover, other factors like formal institutions embedded in the legal environment and framework also condition financial constraints at the macro level....