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1 - How Firms Respond to Regime Change

Published online by Cambridge University Press:  22 June 2023

Robert Kubinec
Robert Kubinec
Affiliation:
New York University Abu Dhabi
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Summary

This chapter puts forward a theory to explain how businesses engage in politics following democratic transitions in countries with significant issues with corruption. The most important variable is the centralization of the networks of brokers who supply companies with needed government privileges. If these rent networks are narrow, then businesspeople must work through a single gatekeeper. If they are broad, then business can engage with multiple brokers and obtain rent more easily.

Keywords

liberalizationdemocratizationnew institutional theoryrent-seekingcorruptionbusiness politics
Type
Chapter
Information
Making Democracy Safe for Busines
Corporate Politics During the Arab Uprisings
 , pp. 8 - 45
Publisher: Cambridge University Press
Print publication year: 2023

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