Bribes, Lobbying and Industrial Structure
29 Pages Posted: 19 Mar 2021
Date Written: March 11, 2021
This paper deals with the relationship between regulatory compliance, bureaucratic corruption, lobbying and the industrial structure of a country. We show that lobbying and bureaucratic corruption can coexist at the macro level when we allow for heterogeneity in firm size. Countries with similar level of development are often characterized by very different industrial structures: we show the implications this has for the level of compliance, corruption and lobbying in that country. Welfare implications of our model point toward encouraging policies that support the small business sector of an economy and toward flexible regulatory policies meant to suppress regulation for small enough firms.
Keywords: Bureaucratic Corruption, Lobbying, Industrial Organization.
JEL Classification: H26, L51, K42
Suggested Citation: Suggested Citation