Watchdogs of the Invisible Hand: NGO monitoring and industry equilibrium
Article dans une revue: 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.
Auteur(s)
Gani Aldashev, Michela Limardi, Thierry Verdier
Revue
- Journal of Development Economics
Date de publication
- 2015
Mots-clés JEL
Mots-clés
- NGOs
- Globalization
- Private regulation
- Monopolistic competition
Pages
- 28-42
URL de la notice HAL
Version
- 1
Volume
- 116