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The composition and interests of Russia’s business lobbies: testing Olson’s hypothesis of the “encompassing organization”

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  • William Pyle
  • Laura Solanko

Abstract

Why are some business lobbies less benign in their external effects than others? In The rise and decline of nations (New Haven: Yale University Press, 1982 ), Mancur Olson proposed that less-encompassing groups—i.e., those whose constituents collectively represent a relatively narrow range of interests—have a greater interest in seeking the types of subsidies, tariffs, tax loopholes, and competition-limiting regulations that, while benefiting their members, impose costs on the rest of society. By drawing on a unique pair of surveys—one targeted to managers of Russian regional lobbies, and the other addressed to managers of Russian industrial enterprises—we provide what we believe to be the most direct test of this hypothesis to date. The pattern of responses is striking. Managers of both the less encompassing lobbies and the enterprises belonging to those types of organizations display stronger preferences for narrowly targeted policy interventions. Our results, that is, strongly support Olson’s hypothesis. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • William Pyle & Laura Solanko, 2013. "The composition and interests of Russia’s business lobbies: testing Olson’s hypothesis of the “encompassing organization”," Public Choice, Springer, vol. 155(1), pages 19-41, April.
    • Handle: RePEc:kap:pubcho:v:155:y:2013:i:1:p:19-41
    DOI: 10.1007/s11127-011-9823-x
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    2. World Bank, 2013. "Russian Federation : National and Regional Trends in Regulatory Burden and Corruption," World Bank Publications - Reports 16566, The World Bank Group.
    3. Andrei Govorun & Israel Marques & William Pyle, 2013. "The political roots of intermediated lobbying: evidence from Russian firms and business associations," HSE Working papers WP BRP 46/EC/2013, National Research University Higher School of Economics.
    4. Vladimir Sokolov & Laura Solanko, 2017. "Political Influence, Firm Performance and Survival," HSE Working papers WP BRP 60/FE/2017, National Research University Higher School of Economics.
    5. Andrei Yakovlev & Lev Freinkman & Anton Zolotov, 2017. "The Collective Action of Think Tanks as a Driver for Reforms: The Case of the Russian Analytical Community," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 495-514, December.
    6. Govorun Andrei & Pyle William & Marques II Israel, 2016. "The political roots of intermediated lobbying: evidence from Russian enterprises and business associations," Business and Politics, De Gruyter, vol. 18(4), pages 395-433, December.
    7. Michael Rochlitz, 2016. "Collective Action Abroad: How Foreign Investors Organize Evidence from Foreign Business Associations In the Russian Federation," HSE Working papers WP BRP 32/PS/2016, National Research University Higher School of Economics.

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    More about this item

    Keywords

    Mancur Olson; Business lobbies; Lobbying; Encompassing; Russia; D71; D72;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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