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Article dans une revue Journal of Development Economics Année : 2015

Watchdogs of the Invisible Hand: NGO monitoring and industry equilibrium

Résumé

Globalization has been accompanied by rising pressure from advocacy non-governmental organizations (NGOs) on multinational firms to act in socially-responsible manner. We analyze how NGO pressure interacts with industry structure, using a simple model of NGO-firm interaction embedded in an industry environment with endogenous markups and entry. We explain three key empirical patterns in developing-country industries under activist pressure: the degree of exit under more intense activist pressure, the differential response of industries to NGO activism, and the general rise of NGO activism following globalization.
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Dates et versions

halshs-01314359, version 1 (11-05-2016)

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Gani Aldashev, Michela Limardi, Thierry Verdier. Watchdogs of the Invisible Hand: NGO monitoring and industry equilibrium. Journal of Development Economics, 2015, 116, pp.28-42. ⟨10.1016/j.jdeveco.2015.03.006⟩. ⟨halshs-01314359⟩
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