Are Foreign Firms Privileged By Their Host Governments? Evidence From The 2000 World Business Environment Survey
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4538-04.pdf
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Author(s)
Huang, Yasheng
Date Issued
June 3, 2005
Series/Report no.
MIT Sloan School of Management Working Paper;4538-04
Abstract
Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds preliminary evidence that foreign firms enjoy significant regulatory advantages - as perceived by the firms themselves - over domestic firms. The findings on regulatory advantages of foreign firms hold with a variety of alternative measures of regulations and with or without firm- and country-level attributes and industry and country controls. There is also evidence that foreign firms' regulatory advantages are especially substantial vis-a-vis the politically weak domestic firms. Furthermore, the regulatory advantages of foreign firms appear stronger in corrupt countries than in non-corrupt countries.
Subjects
Foreign Firms
Regulatory Advantages
World Business Environment Survey
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