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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/46525
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| Title: | | Lobbying and bribes: A survey-based analysis of the demand for influence and corruption  |
| Authors: | | Bennedsen, Morten Feldmann, Sven E. Dreyer Lassen, David |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Public Finance 3496 |
| Abstract: | | We use survey responses by firms to examine the firm-level determinants and effects of political influence, their perception of corruption and prevalence of bribe paying. We find that: (a) measures of political influence and corruption/bribes are uncorrelated at the firm level; (b) firms that are larger, older, exporting, government-owned, are widely held and/or have fewer competitors have more political influence, perceive corruption to be less of a problem and pay bribes less often; (c) influence increases sales and government subsidies and in general makes the firm have a more positive view on the government. In sum, we show that 'strong' firms use their influence to bend laws and regulations, whereas 'weak' firms pay bribes to mitigate the costs of government intervention. |
| JEL: | | D22 D72 G38 O17 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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