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Lobbying, corruption and political influence

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  • Nauro Campos
  • Francesco Giovannoni

Abstract

Conventional wisdom is that lobbying is the preferred mean for exerting political influence in rich countries and corruption the preferred one in poor countries. Analyses of their joint effects are understandably rare. This paper provides econometric evidence on lobbying, corruption and influence using data for almost 4000 firms in 25 transition countries. Our results show that (a) lobbying and corruption are substitutes; (b) firm size, age and ownership as well as political stability are important determinants of lobby membership; and (c) lobbying is a much more effective instrument for political influence than corruption, even in less developed countries. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April.
    • Handle: RePEc:kap:pubcho:v:131:y:2007:i:1:p:1-21
    DOI: 10.1007/s11127-006-9102-4
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    More about this item

    Keywords

    Lobbying; Corruption; Transition; Institutions;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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