This paper presents new evidence that cronyism reduces long-term economic growth by discouraging firms' innovation activities. The analysis is based on novel establishment survey data from The Arab Republic of Egypt which provides information on establishments' political connections, their innovation activities, and their access to policy privileges. The analysis finds that the probability that firms invest in products new to the firm increases from...
انظر المزيد
تفاصيل
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2018/6/29
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ورقة عمل خاصة ببحوث السياسات
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WPS8502
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1
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1
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2018/6/29
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Disclosed
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Do politically connected firms innovate, contributing to long-term economic growth ?
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trade and investment