factor, namely, corruption. The rate of fixed investment is significantly lower where power shortages are more severe and …-reportedly affected by corruption. Although access to finance does not seem to influence the rate of investment for most firms, there is … evidence that investment decisions are constrained by cash flow in enterprises that are unaffected by corruption or power …

business growth seem also to depend on a fourth element, namely, corruption. Specifically, labor regulation affects the growth … only of enterprises for which corruption is not a factor in business decisions. By contrast, power shortages seem to be a … drag on the growth only of enterprises self-reportedly held back by corruption. Lastly, sales growth is constrained by cash …