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Industry Characteristics and Interest Group Formation: An Empirical Study

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  • Kennelly, Brendan
  • Murrell, Peter

Abstract

The role of interest groups in the political process has been the subject of much analysis in both political science and economics. However, few studies have examined directly the factors which influence the variation in interest group formation across industrial sectors and between countries. Using data on 75 industrial sectors in 10 countries, we examine the way in which variations in interest group formation are explained by variations in industrial and political characteristics. In cross-sectional empirical relationships we test for the significance of a variety of industry and political variables. Our results indicate that industry characteristics such as the proportion of total demand purchased by households and the concentration ratio are related to variations in interest group formation. We discuss the implications that our results have for recent theoretical work on the effect of interest groups on economic policy. Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Kennelly, Brendan & Murrell, Peter, 1991. "Industry Characteristics and Interest Group Formation: An Empirical Study," Public Choice, Springer, vol. 70(1), pages 21-40, April.
  • Handle: RePEc:kap:pubcho:v:70:y:1991:i:1:p:21-40
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    Cited by:

    1. Weymouth Stephen, 2013. "Firm lobbying and influence in developing countries: a multilevel approach," Business and Politics, De Gruyter, vol. 14(4), pages 1-26, January.
    2. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    3. Nunnenkamp Peter, 1993. "Worüber die Wirtschaft klagt und wofür sie selbst verantwortlich ist: Unfähige Politik, unternehmerische Prinzipienlosigkeit und der Standort Bundesrepublik," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 42(1), pages 273-294, April.
    4. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    5. Bown, Chad P. & Tovar, Patricia, 2011. "Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform," Journal of Development Economics, Elsevier, vol. 96(1), pages 115-125, September.
    6. Tim Wegenast, 2010. "Uninformed Voters for Sale: Electoral Competition, Information and Interest Groups in the US," Kyklos, Wiley Blackwell, vol. 63(2), pages 271-300, May.
    7. repec:ebl:ecbull:v:15:y:2007:i:18:p:1-13 is not listed on IDEAS
    8. Bonnie Wilson & Jac Heckelman & Dennis Coates, 2007. "Special-Interest Groups and Volatility," Economics Bulletin, AccessEcon, vol. 15(18), pages 1-13.
    9. Jung, Chulho & Krutilla, Kerry & Kip Viscusi, W. & Boyd, Roy, 1995. "The coase theorem in rent-seeking society," International Review of Law and Economics, Elsevier, vol. 15(3), pages 259-268, September.

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