This paper adds to the literature of informal firms-corruption relationship by undertaking a firm level study for India and asking if economic freedom helps the transition from informal to formal by mitigating perceived corruption by firms. Given economic institutions that encompass property...

Available wisdom suggests that a negative relationship prevails between economic freedom and perceived corruption among firms. However, the relationship is far from linear and a number of complex interactions make it fairly nuanced. We show that greater competition may accentuate the problem of...