Report: Individual Political Contributions Result in Benefits to Local Companies

In a recently released paper, two Vanderbilt University professors found that individuals who contribute to political campaigns are more likely to donate to politicians who can benefit them economically. However, the result is that “individual political contributions are also associated with improvements in operating performance of firms in industry clusters.” The researchers conclude there is a positive relationship between the frequency and size of contributions and the performance of local companies. The relationship holds true across Congressional committees but was strongest for those politicians in committees with jurisdiction over geographically concentrated industries, such as mining or manufacturing.