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Join hands or walk alone? Evidence on lobbying for trade policy in India
Economics & Politics ( IF 1.262 ) Pub Date : 2019-10-02 , DOI: 10.1111/ecpo.12141
Amrita Saha 1
Affiliation  

Using primary evidence for 146 Indian manufacturing firms, I examine single and dual lobbying strategies for trade policy influence, and the factors driving firm's choice of these strategies. Firms can adopt a single strategy, by lobbying collectively as a group (Join Hands), or lobbying individually as a firm (Walk Alone). Firms can also adopt a dual strategy, that is, a combination of collective and individual lobbying. The choice of strategy is affected by sector concentration and by tradeoffs between lobbying intensity for sector‐wide and firm‐specific outcomes. The following findings are new for India: First, majority of Indian firms (more than 64% in the sample) use a dual strategy, suggesting the importance to better understand what drives dual strategies. Second, the likelihood of adopting a dual lobbying is higher in sectors that are characterized by low concentration (dispersion is higher), indicating a strong competition effect over free‐riding. Third, relative to the single strategy of collective lobbying, Indian manufacturing firms are likely to join hands while walking alone when targeting firm‐specific outcomes, but prefer to walk alone (single strategy of individual lobbying) when there are tradeoffs between different outcomes, to react quickly. Finally, the availability of resources and firm's perceived effectiveness of its lobbying are significant drivers for the strategy choice.

中文翻译:

手拉手还是独自行走?印度游说贸易政策的证据

我使用146家印度制造公司的主要证据,研究了对贸易政策影响的单一和双重游说策略,以及驱动公司选择这些策略的因素。公司可以采取单一策略,可以通过集体游说(Join Hands),也可以通过个体游说作为公司(Walk Alone))。企业还可以采用双重策略,即集体游说和个人游说相结合。战略的选择受部门集中度以及部门范围游说强度与公司特定结果之间权衡的影响。以下是印度的新发现:首先,大多数印度公司(样本中超过64%)采用双重战略,这表明了更好地理解驱动双重战略的重要性。其次,在以集中度低(分散度高)为特征的行业中,采用双重游说的可能性更高,这表明其对搭便车的竞争效果很强。第三,相对于集体游说的单一策略,印度制造业公司很可能会携手同行在针对公司特定的结果时,但是当在不同结果之间进行权衡时,宁愿独自走动(单个游说的单个策略),以快速做出反应。最后,资源的可用性和公司游说的效果是战略选择的重要推动力。
更新日期:2019-10-02
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