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The Influence of Firms on Government

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  • Macher Jeffrey T

    ()
    (Georgetown University)

  • Mayo John W

    ()
    (Georgetown University)

  • Schiffer Mirjam

    ()
    (Secretariat of the Swiss Competition Commission)

Abstract

While interest group explanations have considerably advanced our understanding of governmental outcomes, much remains to be understood about the specific country-level, industry-level and firm-level characteristics that underlie the influence firms have on the establishment of governmental rules, laws and regulations. In this study, we draw upon a unique database of roughly 6000 international firms to investigate the abilities of firms to affect governmental policies. We find that country-level institutional characteristics, such as the legal origin and political diversity of the firm’s home country, significantly affect the ability to influence government. We also find that industry-level characteristics, such as the number of industry competitors, and firm-level characteristics, such as size and age, are determinants of firm influence on governments.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 11 (2011)
Issue (Month): 1 (January)
Pages: 1-27

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Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:1

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Web page: http://www.degruyter.com

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Cited by:
  1. Jeffrey Macher & John Mayo, 2012. "The World of Regulatory Influence," Journal of Regulatory Economics, Springer, vol. 41(1), pages 59-79, February.

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