To favor more or less? Corporate lobbying over preferential treatment to state-owned enterprises

Dapeng Cai and Jie Li ()
Additional contact information
Jie Li: Jinan University

Journal of Regulatory Economics, 2019, vol. 55, issue 3, No 5, 334-357

Abstract: Abstract In OECD and many other countries, state-owned public enterprises normally receive various forms of exclusive preferential treatment that directly affect the profits of all firms, motivating firms to lobby politicians. Using the common agency approach, we show that when state ownership of public enterprises is sufficiently low, i.e., the privatization process is sufficiently advanced, corporate lobbying boosts preferential treatment, causing public enterprises to “advance” as the playing field is tilted in their favor. Conversely, when state ownership is high, corporate lobbying can reduce preferential treatment, causing public enterprises to “retreat” as the playing field levels.

Keywords: Corporate lobbying; Preferential treatment; Public enterprises; Common agency game; Privatization (search for similar items in EconPapers)
JEL-codes: L32 P20 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11149-019-09388-7 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:55:y:2019:i:3:d:10.1007_s11149-019-09388-7

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

DOI: 10.1007/s11149-019-09388-7

Access Statistics for this article

Journal of Regulatory Economics is currently edited by Menaham Spiegel

More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().