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Project Citation: 

Sukhtankar, Sandip. Replication data for: Sweetening the Deal? Political Connections and Sugar Mills in India. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113829V1

Project Description

Summary:  View help for Summary Political control of firms is prevalent across the world. Evidence suggests that firms profit from political connections, and politicians derive benefit from control over firms. This paper investigates an alternative mechanism through which politicians may benefit electorally from connected firms, examining sugar mills in India. I find evidence of embezzlement in politically controlled mills during election years, reflected in lower prices paid to farmers for cane. This result complements the literature on political cycles by demonstrating how campaign funds are raised rather than used. Politicians may recompense farmers upon getting elected, possibly explaining how they can get away with pilferage. (JEL D72, G34, L66, O13, O17, Q12, Q13)

Scope of Project

JEL Classification:  View help for JEL Classification
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
      Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
      Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness


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