Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300014 
Year of Publication: 
2024
Series/Report no.: 
ZEW Discussion Papers No. 24-035
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset to measure connections between politicians and the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. The economic effects are mediated by better credit ratings while access to subsidies or procurement contracts are documented to be of lower importance.
Subjects: 
Politicians
Firm Performance
Identification
Political Connections
JEL: 
O43
L25
D72
Document Type: 
Working Paper

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