This paper examines whether political connections ease financial constraints faced by firms. Using firm-level data from six Central and Eastern European economies, the paper shows that politically connected firms: (i) have high levels of leverage, (ii) have low levels of profitability, (iii) are...

The Internet greatly increases firms' potential to produce new goods and service for new markets. The Internet is also having a dramatic impact on services, especially in the retail, trade and finance sectors, by enabling firms to digitize their products and deliver them over long distances....