The Political Influence of Foreign Firms in Developing Countries

Rodolphe Desbordes and Julien Vauday

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Foreign firms are likely to attempt to shape host government policies in their favour, as the profitability of MNE foreign affiliates largely depends on the business environment in which they operate. Based on data from the World Business Environment Survey, this paper investigates the political influence of foreign firms in 48 developing countries. It is found that foreign firms derive substantial fiscal and regulatory advantages from their political influence and from their ability to negotiate superior entry conditions.

Date: 2007
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Published in Economics and Politics, 2007, 19 (3), pp.421-451. ⟨10.1111/j.1468-0343.2007.00317.x⟩

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Related works:
Journal Article: THE POLITICAL INFLUENCE OF FOREIGN FIRMS IN DEVELOPING COUNTRIES (2007)
Working Paper: The Political Influence of Foreign Firms in Developing Countries (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00363192

DOI: 10.1111/j.1468-0343.2007.00317.x

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