Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/318457 
Year of Publication: 
2025
Series/Report no.: 
RF Berlin - CReAM Discussion Paper Series No. 06/25
Publisher: 
Rockwool Foundation Berlin (RF Berlin) and Centre for Research & Analysis of Migration (CReAM), Berlin and London
Abstract: 
We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset linking politicians and election candidates to the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. Adding information on credit ratings, subsidies and procurement contracts allows us to distinguish between mechanisms driving the effects over the politician's career.
Subjects: 
Politicians
Firm Performance
Identification
Political Connections
JEL: 
O43
L25
D72
Document Type: 
Working Paper

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