Former Officials and Subsidies to State-owned Enterprises
Former officials in business are often blamed for abusing their connections to the government to distort public policy to their advantage. This paper examines the extent of rents to former officials by analyzing subsidy allocation among state-owned enterprises in Korea. Defining connected CEOs as former members of the National Assembly or government officials, I have estimated the effects of connected CEOs on attracting government subsidies. Substantial replacement of CEOs after the change of political leadership, a unique feature of state-owned enterprises of Korea, helps cleaner identification than other related studies relying only on cross-sectional variations. The empirical evidence is consistent with a hypothesis that connected CEOs are more likely than others to attract state subsidy. This relationship seems stronger in case of CEOs from the relevant offices and weaker when the competing recipients have strong connections. Given the data limitation, however, part of the estimated effects may come from expertise rather than connections especially for former bureaucrats.
Volume (Year): 36 (2011)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: http://www.jed.or.kr/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yoshiro Miwa & J. Mark Ramseyer, 2005.
"Who Appoints Them, What Do They Do? Evidence on Outside Directors from Japan,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 14(2), pages 299-337, 06.
- Yoshiro Miwa & J. Mark Ramseyer, 2002. "Who Appoints Them, What Do they Do? Evidence on Outside Directors from Japan," CIRJE F-Series CIRJE-F-159, CIRJE, Faculty of Economics, University of Tokyo.
- Jinyoung Hwang, 2002. "A Note On The Relationship Between Corruption And Government Revenue," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(2), pages 161-177, December.
- ,, 2009. "Economics of Monetary Union," OUP Catalogue, Oxford University Press, edition 8, number 9780199563234, June.
- Asim Ijaz Khwaja & Atif Mian, 2005. "Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market," The Quarterly Journal of Economics, Oxford University Press, vol. 120(4), pages 1371-1411.
When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:36:y:2011:i:2:p:1-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Changhui Kang)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.