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This study investigates how firm-level political connections (PCs) play a role in their access to bank credit. We decompose the bank loan application process into the self-selection process of firms and the selection process of banks. Using 17,249 firms from 2018‒2020 World Bank Enterprise...
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Purpose The literature studying the effect of democratic political systems on financial development has found conflicting results. Besides, recent work has focused on the level effects of democracy on financial outcomes showing evidence of positive, negative and no direct impact. This paper aims...
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