The political influence of foreign firms in developing countries

Rodolphe Desbordes, Julien Vauday

Research output: Contribution to journalArticle

29 Citations (Scopus)
250 Downloads (Pure)

Abstract

Foreign firms are likely to attempt to shape host government policies in their favour, as the profitability of MNE foreign affiliates largely depends on the business environment in which they operate. Based on data from the World Business Environment Survey, this paper investigates the political influence of foreign firms in 48 developing countries. It is found that foreign firms derive substantial fiscal and regulatory advantages from their political influence and from their ability to negotiate superior entry conditions.
Original languageEnglish
Pages (from-to)421-451
Number of pages31
JournalEconomics and Politics
Volume19
Issue number3
DOIs
Publication statusPublished - Nov 2007

Keywords

  • political influence
  • developing countries

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