626
Views
4
CrossRef citations to date
0
Altmetric
Articles

Political Connections Reduce Job Creation: Firm-level Evidence from Lebanon

& ORCID Icon
Pages 1373-1396 | Received 11 May 2020, Accepted 02 Nov 2020, Published online: 15 Dec 2020

References

  • Abou Jaoude, H., (2015). “Labour market and employment policy in Lebanon.” ETF Working Paper.
  • Acemoglu, D., Hassan, T., & Tahoun, A. (2018). The power of the street: Evidence from Egypt’s Arab Spring. The Review of Financial Studies, 31(1), 1–42. https://doi.org/https://doi.org/10.1093/rfs/hhx086
  • Aga, G., Francis, D., & Rodriguez Meza, J., (2015). “SMEs, age, and jobs: A review of the literature, metrics, and evidence.” World Bank Policy Research Working Paper 7493.
  • Aghion, P., Blundell, R., Griffith, R., Howitt, P., & Prantl, S. (2009). The effects of entry on incumbent innovation and productivity. The Review of Economics and Statistics, 91(1), 20–32. https://doi.org/https://doi.org/10.1162/rest.91.1.20
  • Aghion, P., Harris, C., Howitt, P., & Vickers, J. (2001). Competition, imitation and growth with step-by-step innovation. The Review of Economic Studies, 68(3), 467–492. https://doi.org/https://doi.org/10.1111/1467-937X.00177
  • Atiyas, İ. & Bakis, O. (2015). Structural change and industrial policy in Turkey. Emerging Markets Finance and Trade, 51(6), 1209–1229. https://doi.org/https://doi.org/10.1080/1540496X.2015.1080523
  • Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V., (2014). Who creates jobs in developing countries? Small Business Economics, 43(1), 75–99. https://doi.org/https://doi.org/10.1007/s11187-014-9549–5
  • Bertrand, M., Kramarz, F., Schoar, A., & Thesmar, D. (2018). The cost of political connections. Review of Finance, 22, 849–876.
  • Chaaban, J. (2019). Mapping connections between Lebanon's banking sector and the ruling class. In I. Diwan, I. Atiyas, and A. Malik (Eds.), Crony capitalism in the Middle East: Business and politics from liberalization to the Arab Spring, Oxford University Press
  • Claessens, S., Feijen, E., & Laeven, L. (2008). Political connections and preferential access to finance: The role of campaign contributions. Journal of Financial Economics, 88, 554–580.
  • Corstange, D. (2016). The price of a vote in the Middle East: Clientelism and communal politics in Lebanon and Yemen. Cambridge, UK: Cambridge University Press. doi:https://doi.org/10.1017/CBO9781316227169
  • Credit Suisse. (2015). Global wealth databook.
  • Cull, R., & Xu, L. (2005). Institutions, ownership, and finance: The determinants of profit reinvestment among Chinese firms. Journal of Financial Economics, 77(1), 117–146.
  • Davis, S. J., Haltiwanger, J. C., & Schuh, S. (1998). Job creation and destruction. MIT Press.
  • Dinc, I. (2005). Politicians and banks: Political influences on government-owned banks in emerging markets. Journal of Financial Economics, 77, 453–479.
  • Diwan, I., Keefer, P., & Schiffbauer, M. (2020). Pyramid capitalism: Political connections, regulation, and firm productivity in Egypt. Review of International Organizations, 15(1), 211–246.
  • Eibl, E., & Malik, A., (2016). The politics of partial liberalization: Cronyism and non-tariff protection in Mubarak’s Egypt (Working Paper Series 2016-27). Oxford, UK: Center for the Study of African Economics (CSAE).
  • Evans, D. S. (1987). The relationship between firm growth, size, and age: Estimates for 100 manufacturing industries. The Journal of Industrial Economics, 35, 567–581.
  • Faccio, M. (2006). Politically connected firms. American Economic Review, 96(1), 369–386.
  • Fisman, R. (2001). Estimating the value of political connections. American Economic Review, 91, 1095–1102.
  • Francis, B. B., Hasan, I., Sun, X., & Wu, Q. (2016). CEO political preference and corporate tax sheltering. Journal of Corporate Finance, 38, 37–53.
  • Goldman, E., Rocholl, J., & So, J. (2013). Politically connected boards of directors and the allocation of procurement contracts. Review of Finance, 17, 1617–1648.
  • Haltiwanger, J., Jarmin, R. S., & Miranda, J. (2013). Who creates jobs? Small versus large versus young. Review of Economics and Statistics, 95, 347–361.
  • Hochman, G., Tabakis, C., & Zilberman, D. (2013). The impact of international trade on institutions and infrastructure. Journal of Comparative Economics, 41(1), 126–140.
  • Ibrahim, R., & Saoud, G., (2015). The ruler by money’s order – Al-Hakem bi Amr Al-Mal. Al-Akhbar.
  • International Labor Organization. (2015). Towards decent work in Lebanon: Issues and challenges in light of the Syrian refugee crisis.
  • Johnson, S., & Mitton, T. (2003). Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics, 67, 351–382.
  • Khwaja, A. I., & Mian, A. (2005). Do lenders favor politically connected firms? Rent provision in an emerging financial market. The Quarterly Journal of Economics, 120, 1371–1411.
  • Klapper, L., & Richmond, C. (2011). Patterns of business creation, survival and growth: Evidence from Africa. Labour Economics, 18, S32–S44.
  • Lebanese Center for Policy Studies. (2013). Finding a job in Lebanon: The hidden cost of using personal connections.
  • Leenders, R. (2012). Spoils of truce: Corruption and state-building in postwar Lebanon. Ithaca, NY. doi:https://doi.org/10.7591/cornell/9780801451003.001.0001
  • Leuz, C., & Oberholzergee, F. (2006). Political relationships, global financing, and corporate transparency: Evidence from Indonesia. Journal of Financial Economics, 81, 411–439.
  • Macneil, I. R. (1978). Contracts: adjustment of long-term economic relations under classical, neoclassical, and relational contract law. Northwestern University Law Review, 72, 854–905.
  • Neumark, D., Wall, B., & Zhang, J. (2011). Do small businesses create more jobs? New evidence for the United States from the national establishment time series. Review of Economics and Statistics, 93(1), 16–29.
  • Rijkers, B., Baghdadi, L., & Raballand, G. (2017). Political connections and tariff evasion evidence from Tunisia. The World Bank Economic Review, 31, 459–482.
  • Rijkers, B., Freund, C., & Nucifora, A. (2017). All in the family: State capture in Tunisia. Journal of Development Economics, 124, 41–59.
  • Salibi, K. S. (1988). A house of many mansions: The history of Lebanon reconsidered. New York, NY: I.B. Tauris & Co Ltd.
  • Salti, N., & Chaaban, J. (2010). The role of sectarianism in the allocation of public expenditure in post-war Lebanon. International Journal of Middle East Studies, 42, 637–655.
  • Shleifer, A., & Vishny, R. W. (1994). Politicians and firms. The Quarterly Journal of Economics, 109, 995–1025.
  • Traboulsi, F. (2015). A history of modern Lebanon. London: Pluto Press. doi:https://doi.org/10.2307/j.ctt183p4f5
  • Van Biesebroeck, J. (2005). Firm size matters: Growth and productivity growth in African manufacturing. Economic Development and Cultural Change, 53, 545–583.
  • World Bank. (2014). Jobs or privileges: Unleashing the employment potential of the Middle East and North Africa. Washington, DC: World Bank.
  • Yu, F., & Yu, X. (2011). Corporate lobbying and fraud detection. Journal of Financial and Quantitative Analysis, 46, 1865–1891.
  • Ziadeh, H. (2006). Sectarianism and intercommunal nation-building in Lebanon. London: Hurst and Co. doi:https://doi.org/10.1177/00223433070440030715

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.