Lobbying and the power of multinational firms

Arbeitspapier

Are national or multinational firms better lobbyists? This paper analyzes the extent of national environmental regulation when policy is determined in a lobbying game between a government and firm. We compare the resulting regulation levels for national and multinational firms. We identify three countervailing forces, the easier-to-shut-down effect, the easier-to-curb-exports effect and the multiple-plant effect. The interplay of these three forces determines whether national or multinational firms produce more, depending on such parameters as the potential environmental damages, transportation costs and the in uence of the firm. We also show that welfare levels are higher with multinational firms than with national firms when there is no lobbying, but that lobbying can reverse the welfare ordering.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 1008

Classification and Topics

• Classification: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Multinational Firms; International Business ; Economics of Regulation
• Subject: multinational enterprises ; regulation ; policy formation ; lobbying ; interest groups ; foreign direct investment ; Interessenpolitik ; Multinationales Unternehmen ; Interessenvertretung ; Direktinvestition ; Neue politische Ökonomie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Polk, Andreas ; Schmutzler, Armin ; Müller, Adrian
• Event: Veröffentlichung
• (who): University of Zurich, Socioeconomic Institute
• (where): Zurich
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/76130
• Last update: 30.03.20252025, 9:44 PM CEST