Public-Private Entanglement: Entrepreneurship in a Hybrid Political Order, the Case of Lebanon
AbstractThe instability and informality that characterize hybrid political orders and its effects on entrepreneurs remains largely unexplored in the scholarly literatures. In this paper we provide initial findings from the case of entrepreneurs' access to electricity in Lebanon. Using quantitative and qualitative methods we find that political connections significantly influence the investment decisions of entrepreneurs and the performance of their firms. In general, a hybrid political order imposes a 'tax' on entrepreneurship by channelling entrepreneurial talent into lobbying and bribery; by reinforcing male and family-owned dominance in business; and by skewing investment decisions. Specifically, we find that family firms whose entrepreneurs engage in bribery, and who obtain government contracts alleviate electricity problems and perform better.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7795.
Length: 30 pages
Date of creation: Dec 2013
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Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M48 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Government Policy and Regulation
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-ARA-2013-12-15 (MENA - Middle East & North Africa)
- NEP-ENT-2013-12-15 (Entrepreneurship)
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