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Public-Private Entanglement: Entrepreneurship in a Hybrid Political Order, the Case of Lebanon

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  • Stel, Nora

    (Maastricht School of Management)

  • Naudé, Wim

    (RWTH Aachen University)

Abstract

The instability and informality that characterize hybrid political orders and its effects on entrepreneurs remains largely unexplored in the scholarly literatures. In this paper we provide initial findings from the case of entrepreneurs' access to electricity in Lebanon. Using quantitative and qualitative methods we find that political connections significantly influence the investment decisions of entrepreneurs and the performance of their firms. In general, a hybrid political order imposes a 'tax' on entrepreneurship by channelling entrepreneurial talent into lobbying and bribery; by reinforcing male and family-owned dominance in business; and by skewing investment decisions. Specifically, we find that family firms whose entrepreneurs engage in bribery, and who obtain government contracts alleviate electricity problems and perform better.

Suggested Citation

  • Stel, Nora & Naudé, Wim, 2013. "Public-Private Entanglement: Entrepreneurship in a Hybrid Political Order, the Case of Lebanon," IZA Discussion Papers 7795, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7795
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    Cited by:

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    2. Dibeh, Ghassan & Fakih, Ali & Marrouch, Walid, 2017. "Decision to Emigrate Amongst the Youth in Lebanon," IZA Discussion Papers 10493, Institute of Labor Economics (IZA).
    3. Samer Matta, 2017. "The Microeconomic Impact of Political Instability: Firm-Level Evidence from Tunisia," Working Papers 1135, Economic Research Forum, revised 09 Jul 2017.

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    More about this item

    Keywords

    entrepreneurship; development; political economy; electricity; infrastructure; Middle East; Lebanon; hybrid political order;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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