Lobbying Activities of Multinational Firms
AbstractThis paper investigates if multinationals in.uence the political process through lobbying more effectively than national firms. First, I introduce a model which contrasts a multinational’s incentives for lobbying with those of a national firm. Then the effect of lobbying on the political decision is analyzed. I conclude that multinationals have smaller incentives to lobby because they have smaller stakes in national markets. But the effectiveness of lobbying by multinationals might be higher if the government cares much about production in the home country. The resulting regulation depends on the relative strength of these effects.
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Bibliographic InfoPaper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0205.
Length: 32 pages
Date of creation: Jun 2002
Date of revision: Jun 2002
multinational enterprizes; regulation; policy formation; lobbying; interest groups; foreign direct investment.;
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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