Opendata, web and dolomites


Political and Business Networks

Total Cost €


EC-Contrib. €






Project "POLBUSNETWORKS" data sheet

The following table provides information about the project.


Organization address
address: NADOR UTCA 9
postcode: 1051

contact info
title: n.a.
name: n.a.
surname: n.a.
function: n.a.
email: n.a.
telephone: n.a.
fax: n.a.

 Coordinator Country Hungary [HU]
 Total cost 1˙833˙214 €
 EC max contribution 1˙833˙214 € (100%)
 Programme 1. H2020-EU.1.1. (EXCELLENT SCIENCE - European Research Council (ERC))
 Code Call ERC-2016-COG
 Funding Scheme ERC-COG
 Starting year 2017
 Duration (year-month-day) from 2017-05-01   to  2022-04-30


Take a look of project's partnership.

# participants  country  role  EC contrib. [€] 
1    KOZEP-EUROPAI EGYETEM HU (BUDAPEST) coordinator 1˙833˙214.00


 Project objective

I explore the role of networks involving firms---networks between firms and politicians, and networks between firms and firms--for economic outcomes. I focus on two broad questions. (1) What are the determinants and implications of political favor networks? Although political favoritism affects allocations in many countries, its mechanisms are not well understood. I develop a new model based on the idea of trust embedded in favor networks, and test in Hungarian data the model's implications about how political centralization shapes favoritism. I also quantify the welfare cost of misallocation created by favoritism. My results help understand how political institutions shape economic outcomes. (2) What is the impact of supply chain networks on firm performance? Inputs from suppliers account for the majority of firm sales, yet we know little about the contribution of suppliers to firm performance. I use a field experiment in China to measure the causal effect of suppliers and the underlying mechanisms. I then use observational data from Hungary to quantify the contribution of differences in suppliers to differences in firm performance. The results help understand how supply chains and their misallocation shape firm and aggregate productivity. My approach to both of these questions emphasizes the role of trust embedded in firm networks and how these trust-based networks create misallocation of resources. A key component of this research is the development of original datasets. Beyond documenting and explaining facts, I also hope to obtain policy implications on reducing favoritism and improving firm performance in developing countries.


year authors and title journal last update
List of publications.
2018 Bisztray, Márta; Koren, Miklós; Szeidl, Adam
Learning to import from your peers
published pages: 242-258, ISSN: 0022-1996, DOI: 10.5281/zenodo.1434685
Journal of International Economics 115 242-258 Volume 115, November 2018 2020-01-30
2017 Jing Cai, Adam Szeidl
Interfirm Relationships and Business Performance*
published pages: 1229-1282, ISSN: 0033-5533, DOI: 10.1093/qje/qjx049
The Quarterly Journal of Economics 133/3 2019-03-11

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