impact of corruption on employment growth among private firms. Using firm-level survey data for 109 countries, the analysis … finds that corruption has a much larger negative impact on employment growth for firms that are financially constrained … employment growth is about 5.1 percent. The results show that corruption "sands the wheel" at high levels of financial constraint …

that bribes can be distortionary even when bribes act as fixed costs. These results imply that corruption alone may not be … detrimental to firm growth but when combined with limited access to finance, the cost of corruption seriously hampers the growth …

associated with a reduction in firm revenue and employment growth. Exploiting sectoral variation, we find that the leverage …