Arbeitspapier
Favoritism and Firms: Micro Evidence and Macro Implications
We study the economic implications of regional favoritism, a form of distributive politics that redistributes resources geographically within countries. Using enterprise surveys from low- and middle-income countries, we document that firms located close to leaders' birthplaces grow substantially in sales and employment after leaders assume office. Firms in favored areas also experience increases in sales per worker, wages, and measured total factor productivity. These effects are short-lived, and operate through rising (public) demand for the non-tradable sector. We calibrate a simple structural model of resource misallocation on our estimates. This exercise implies that favoritism reduces output by 0.5% annually.
- Sprache
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Englisch
- Erschienen in
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Series: CESifo Working Paper ; No. 9797
- Klassifikation
-
Wirtschaft
Firm Behavior: Empirical Analysis
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Institutions and Growth
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- Thema
-
regional favoritism
firm performance
enterprise surveys
resource misallocation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Asatryan, Zareh
Baskaran, Thushyanthan
Birkholz, Carlo
Gomtsyan, David
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:21 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Asatryan, Zareh
- Baskaran, Thushyanthan
- Birkholz, Carlo
- Gomtsyan, David
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2022
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