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Political institutions, lobbying and corruption

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  • CAMPOS, NAURO F.
  • GIOVANNONI, FRANCESCO

Abstract

Although firms use various strategies to try to influence government policy, with lobbying and corruption chiefly among them, and political institutions play an important role in determining policy choices, very little research has been devoted to these topics. This paper tries to fill this gap. Using cross-country enterprise-level data, it investigates (1) the effect of a key political institution, namely electoral rules, on the probability that a firm engages in lobbying activities and (2) the impact of lobbying on influence, accounting for corruption and political institutions. The main conclusion is that lobbying is a significantly more effective way of generating political influence than corruption, and that electoral rules are a key mediating political institution. Our baseline estimate is that the probability of influencing government policy is 16% higher for firms that are members of lobbying groups than for those firms that are not.

Suggested Citation

  • Campos, Nauro F. & Giovannoni, Francesco, 2017. "Political institutions, lobbying and corruption," Journal of Institutional Economics, Cambridge University Press, vol. 13(4), pages 917-939, December.
    • Handle: RePEc:cup:jinsec:v:13:y:2017:i:04:p:917-939_00
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    Cited by:

    1. Folorunsho M. Ajide, 2023. "Institutions and Entrepreneurship in Africa: Does Democracy Matter?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(3), pages 553-589, November.
    2. Abbas Khandan, 2022. "Externalities in the rent-seeking strategies of lobbying and bribery," Public Sector Economics, Institute of Public Finance, vol. 46(3), pages 421-450.
    3. Méon, Pierre-Guillaume & Sekkat, Khalid, 2022. "A time to throw stones, a time to reap: how long does it take for democratic transitions to improve institutional outcomes?," Journal of Institutional Economics, Cambridge University Press, vol. 18(3), pages 429-443, June.
    4. Fernando del Río, 2021. "The impact of rent seeking on social infrastructure and productivity," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1741-1760, August.
    5. Emery, Thomas & Mélon, Lela & Spruk, Rok, 2023. "Does e-procurement matter for economic growth? Subnational evidence from Australia," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 318-334.
    6. Lisciandra Maurizio & Miralles Asensio Antonio & Monteforte Fabio, 2024. "Search and Matching in Political Corruption," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 69-96, January.
    7. Adeleke, Olaitan & McSharry, Patrick E., 2022. "Female enrollment, child mortality and corruption are good predictors of a country’s UN Education Index," International Journal of Educational Development, Elsevier, vol. 90(C).
    8. del Río, Fernando, 2018. "Governance, social infrastructure and productivity," MPRA Paper 86245, University Library of Munich, Germany, revised 16 Apr 2018.
    9. Andris Zimelis, 2020. "Corruption research: A need for an integrated approach," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(3), pages 288-306, September.
    10. Hannah Charlotte Joos & Dodo zu Knyphausen-Aufseß & Ulrich Pidun, 2020. "Project Stakeholder Management as the Integration of Stakeholder Salience, Public Participation, and Nonmarket Strategies," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(3), pages 447-477, July.

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