31 Pages Posted: 22 Oct 2007
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.
Suggested Citation: Suggested Citation
Desbordes, Rodolphe and Vauday, Julien, The Political Influence of Foreign Firms in Developing Countries. Economics & Politics, Vol. 19, No. 3, pp. 421-451, November 2007. Available at SSRN: https://ssrn.com/abstract=1022736 or http://dx.doi.org/10.1111/j.1468-0343.2007.00317.x
By Garth Frazer
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