Working Paper

Pyramid Capitalism : Political Connections, Regulation, and Firm Productivity in Egypt

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Diwan, Ishac
dc.contributor.author
Keefer, Philip
dc.contributor.author
Schiffbauer, Marc
dc.date.accessioned
2015-07-20T15:28:40Z
dc.date.available
2015-07-20T15:28:40Z
dc.date.issued
2015-07
dc.date.lastModified
2017-12-14T04:08:31Z
dc.description.abstract
This paper uses an original database of 469 politically connected firms under the Mubarak regime in Egypt to explore the economic effects of close state-business relations. Previous research has shown that political connections are lucrative. The paper addresses several questions raised by this research. Do connected firms receive favorable regulatory treatment? They do: connected firms are more likely to benefit from trade protection, energy subsidies, access to land, and regulatory enforcement. Does regulatory capture account for the high value of connected firms? In the sample, regulatory capture as revealed by energy subsidies and trade protection account for the higher profits of politically connected firms. Do politically connected firms hurt aggregate growth? The paper identifies the growth effects of the entry of politically connected firms by comparing detailed 4-digit sectors where they entered, between 1996 and 2006, and sectors that remained unconnected. The entry of connected firms into new, modern, and previously unconnected sectors slows aggregate employment growth and skews the distribution of employment toward less productive, smaller firms.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/07/24744323/pyramid-capitalism-political-connections-regulation-firm-productivity-egypt
dc.identifier.uri
http://hdl.handle.net/10986/22236
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7354
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
EMPLOYMENT
dc.subject
FINANCIAL SERVICES
dc.subject
AUTOMOBILE
dc.subject
HOLDING COMPANIES
dc.subject
COMPETITORS
dc.subject
DOMAINS
dc.subject
EQUIPMENT
dc.subject
BUSINESS OPPORTUNITIES
dc.subject
PARTY
dc.subject
FINANCIAL MANAGEMENT
dc.subject
TELECOMMUNICATION
dc.subject
GUARANTEES
dc.subject
ENTERPRISE SURVEY
dc.subject
VIDEO
dc.subject
INFORMATION
dc.subject
ENTREPRENEURS
dc.subject
ENTREPRENEURIAL SKILL
dc.subject
MANUFACTURERS
dc.subject
COMPANIES
dc.subject
MARKET SHARES
dc.subject
TRANSMISSION
dc.subject
LOAN
dc.subject
TRACEABILITY
dc.subject
FIRM SIZE
dc.subject
PRICE
dc.subject
RETAIL TRADE
dc.subject
LISTED COMPANIES
dc.subject
TIME PERIOD
dc.subject
PC
dc.subject
BUSINESS RELATIONS
dc.subject
BRANCH
dc.subject
COMPUTER
dc.subject
CUSTOMS CLEARANCE
dc.subject
OPEN ACCESS
dc.subject
TELEVISION
dc.subject
NEW TECHNOLOGIES
dc.subject
INSTITUTIONS
dc.subject
ADVERTISING
dc.subject
DATA
dc.subject
MARKET ENTRY
dc.subject
COLLUSION
dc.subject
GOVERNMENT REGULATIONS
dc.subject
FINANCIAL INSTITUTION
dc.subject
TELECOMMUNICATIONS
dc.subject
FIRM SIZES
dc.subject
INCOME INEQUALITY
dc.subject
LICENSE
dc.subject
REGULATORY BURDEN
dc.subject
CUSTOMS
dc.subject
PRODUCTIVITY
dc.subject
GOVERNMENT CONTRACTS
dc.subject
TELEPHONY
dc.subject
GLOBALIZATION
dc.subject
BUSINESS SERVICES
dc.subject
BARRIERS TO ENTRY
dc.subject
MARKETS
dc.subject
FIRM
dc.subject
LAWYERS
dc.subject
WEB
dc.subject
LINKS
dc.subject
LENDERS
dc.subject
LOANS
dc.subject
LICENSING
dc.subject
SUBSIDIES
dc.subject
RADIO
dc.subject
STORES
dc.subject
GOVERNMENT SERVICES
dc.subject
TRANSACTIONS
dc.subject
MANUFACTURING
dc.subject
USERS
dc.subject
INTERNATIONAL STANDARDS
dc.subject
GRANT
dc.subject
TRANSACTION
dc.subject
INVESTORS
dc.subject
FIRMS
dc.subject
INSPECTION
dc.subject
PROCUREMENT
dc.subject
RESULTS
dc.subject
MARKET PRICES
dc.subject
VALUE
dc.subject
REGULATORY ENVIRONMENT
dc.subject
ELECTRICITY
dc.subject
MACROECONOMICS
dc.subject
NETWORKS
dc.subject
FINANCIAL PERFORMANCE
dc.subject
ENTERPRISE
dc.subject
PRODUCT CATEGORY
dc.subject
EXPORT PROMOTION
dc.subject
JOB CREATION
dc.subject
RETAIL SALE
dc.subject
PRIVATE SECTOR
dc.subject
MARKET
dc.subject
COMPANY
dc.subject
MARKET COMPETITION
dc.subject
ADMINISTRATION
dc.subject
SHAREHOLDERS
dc.subject
RESULT
dc.subject
TAXATION
dc.subject
GOVERNMENT POLICIES
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
MANUFACTURING INDUSTRIES
dc.subject
INVESTOR
dc.subject
LAND
dc.subject
LICENSES
dc.subject
BUSINESS SECTOR
dc.subject
BUSINESS
dc.subject
PERFORMANCE
dc.subject
PUBLIC ADMINISTRATION
dc.subject
BUSINESS” INDICATORS
dc.subject
INSPECTIONS
dc.subject
GOVERNMENT SERVICE
dc.subject
INNOVATION
dc.subject
ECONOMIC ACTIVITIES
dc.subject
INSTITUTION
dc.subject
PROFIT
dc.subject
COMMUNICATION
dc.subject
BUSINESS REGULATIONS
dc.subject
SMALL FIRMS
dc.subject
GOVERNMENT CONTRACT
dc.subject
DATABASE
dc.subject
PROFITS
dc.subject
TECHNOLOGIES
dc.subject
SEE
dc.subject
GROWTH POTENTIAL
dc.subject
MOTION PICTURE
dc.subject
GUARANTEE
dc.subject
PRICES
dc.subject
USES
dc.subject
INNOVATIONS
dc.title
Pyramid Capitalism
en
dc.title.subtitle
Political Connections, Regulation, and Firm Productivity in Egypt
en
dc.type
Working Paper
en
okr.date.disclosure
2015-07-02
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/07/24744323/pyramid-capitalism-political-connections-regulation-firm-productivity-egypt
okr.globalpractice
Macroeconomics and Fiscal Management
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7354
okr.identifier.externaldocumentum
090224b082fcb1cb_1_0
okr.identifier.internaldocumentum
24744323
okr.identifier.report
WPS7354
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/07/02/090224b082fcb1cb/1_0/Rendered/PDF/Pyramid0capita0roductivity0in0Egypt.pdf
en
okr.region.administrative
Middle East and North Africa
okr.region.country
Egypt, Arab Republic of
okr.topic
Private Sector Development :: E-Business
okr.topic
Finance and Financial Sector Development :: Microfinance
okr.topic
Small Scale Enterprises
okr.topic
Banks Banking Reform
okr.topic
Macroeconomics and Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic
Macroeconomics and Economic Growth :: Political Economy
okr.unit
Macroeconomics and Fiscal Management Global Practice Group

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