A Privileged Position? The Influence of Business Interests in Government Consultations

Abstract

The relative influence of business interests in the formulation of public policy is disputed, and empirical results remain inconclusive. Business groups are generally expected to be more successful than other groups in influencing public policy because they are able to deliver detailed and technical knowledge about their sector and because the welfare of business is crucial for the economic well-being of society. However, based on an exchange relation logic we argue that the lobbying resources of business groups are not equally important across policy areas. We study overt influence in one stage in the policy-making process and test how business influence is moderated by policy issue in a dataset containing all consultations on Danish bills in the parliamentary year 2009/10. In consultations regarding business regulation, business groups are indeed more influential than other interest groups; but in consultations regarding public sector services and general regulation, nonbusiness groups tend to be more successful than business groups. Business has a privileged position but only on its home turf.