2025/01/27 by Veljko Fotak, Hye Seung (Grace) Lee, Hye Seung Lee +2
Business, Management and Accounting · #Political Influence and Corporate Strategies
paper · pdf · doi:10.1017/s0022109024000437
Abstract We investigate whether firm-level political connections affect the allocation of exemptions from tariffs imposed on US 550 billion of Chinese goods imported to the United States annually beginning in 2018. Evidence points to politicians not only rewarding supporters but also punishing opponents: Past campaign contributions to the party controlling (in opposition to) the executive branch increase (decrease) approval likelihood. Our findings point to quid pro quo arrangements between politicians and firms, as opposed to the “information” channel linking political access to regulatory outcomes.