B.S Business Government Relations

Business-government relations are a form of benefit exchange, and both firms and politicians are involved in such exchange for some reasons. There are several reasons for policy-making politicians to establish relationships with particular firms. Corruption in terms of bribery, i.e. benefits that go right into politicians personal pocket, is an obvious but illegal reason and mechanism why and how politicians are involved in personal business-government relations (UNDP, 2003). In this study, however, corruption involving high-level officials is not the major focus; instead, this study will look at how the economy manager role of transition economy governments drives their high-level officials to establish business-government relations with firms.