Doctor of Philosophy, The Ohio State University, 2007, Political Science
In the past 15 years, the post-communist countries have attempted to rebuild state society relations. Central to this process has been the formation of business associations. Existing literature often treats business associations as marginal players. This dissertation demonstrates that they are important organizations that have a profound effect on the political and economic life of post-communist countries. Moreover, while scholars have examined the behavior and influence of interest groups, the actual causes of group formation remain underdeveloped. This dissertation examines the creation of business associations and their subsequent development across countries and economic sectors. Based on a cross-national survey of firms in 25 countries as well as a comparative analysis of business interest representation in Russia, Ukraine, Croatia, and Kazakhstan, it finds that low-level bureaucratic corruption and excessive state regulations facilitate the formation of business associations. It argues that increasing bureaucratic pressure on businesses stimulates collective action to combat corruption. Another empirical finding is that firms in different sectors of the economy are unequally represented by business associations. Contrary to prevailing theoretical arguments, firms in the service sector are most likely to join business associations, while firms in mining and heavy industry are least likely to join. This is consistent with the previous argument because firms in service sectors are more vulnerable to invasive regulations. Analysis suggests that the nature of state regulatory institutions affects business association formation. When corruption and regulations by bureaucrats are rampant, businesses have greater incentives to join associations providing legitimate means to counter bureaucratic pressure. Thus, business associations arise as a defensive mechanism to protect business against corruption and extensive regulation. This contributes to the debates about th (open full item for complete abstract)
Committee: Timothy Frye (Advisor)
Subjects: Political Science, General