The Influence of Firms on Government

Macher Jeffrey T (), John Mayo and Schiffer Mirjam ()
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Macher Jeffrey T: Georgetown University
Schiffer Mirjam: Secretariat of the Swiss Competition Commission

The B.E. Journal of Economic Analysis & Policy, 2011, vol. 11, issue 1, 27

Abstract: While interest group explanations have considerably advanced our understanding of governmental outcomes, much remains to be understood about the specific country-level, industry-level and firm-level characteristics that underlie the influence firms have on the establishment of governmental rules, laws and regulations. In this study, we draw upon a unique database of roughly 6000 international firms to investigate the abilities of firms to affect governmental policies. We find that country-level institutional characteristics, such as the legal origin and political diversity of the firm’s home country, significantly affect the ability to influence government. We also find that industry-level characteristics, such as the number of industry competitors, and firm-level characteristics, such as size and age, are determinants of firm influence on governments.

Keywords: influence; government; interest groups; legal origins (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (10)

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DOI: 10.2202/1935-1682.2153

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