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Are Foreign Firms Privileged By Their Host Governments? Evidence From The 2000 World Business Environment Survey

Yasheng Huang

No 4538-04, Working papers from Massachusetts Institute of Technology (MIT), Sloan School of Management

Abstract: Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds preliminary evidence that foreign firms enjoy significant regulatory advantages - as perceived by the firms themselves - over domestic firms. The findings on regulatory advantages of foreign firms hold with a variety of alternative measures of regulations and with or without firm- and country-level attributes and industry and country controls. There is also evidence that foreign firms' regulatory advantages are especially substantial vis-a-vis the politically weak domestic firms. Furthermore, the regulatory advantages of foreign firms appear stronger in corrupt countries than in non-corrupt countries.

Keywords: Foreign Firms; Regulatory Advantages; World Business Environment Survey (search for similar items in EconPapers)
Date: 2005-06-03
New Economics Papers: this item is included in nep-pol
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Citations: View citations in EconPapers (6)

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