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The ‘Invisible Role’ of Business Groups is made Evident

Rungi, Armando The ‘Invisible Role’ of Business Groups is made Evident. Review of Environment, Energy and Economics. pp. 1-5. (2012)

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Business Groups collect and coordinate legally autonomous firms spanning both within and across national borders . They represent a lion's share of value added generation on a world scale, and yet they received little attention in economics literature, probably due to a lack of detailed data. In Altomonte and Rungi (2013) we exploited a unique own-built dataset of proprietary linkages to find that: a) Business Groups are present in both developing and developed countries, adapting their organization according to the peculiarities of the hosting environment; b) within Business Groups, choices of integration of production activities are not independent from choices of management coordination; c) eventually, choices of management coordination reveal to be important drivers of productivity and dominate on choices of vertical integration. More in general, here we argue, data are telling us that the adoption of different organizational structures at the firm level can in part explain the endurance of productivity gaps across industries and countries and the phenomenon of Business Groups becomes even more important after the emergence of Global Value Chains.

Item Type: Article
Identification Number: 10.7711/feemre3.2013.05.003
Uncontrolled Keywords: Production Chains, Hierarchies, Business Groups, Financial Development, Property Rights, Vertical Integration, Corporate Ownership, Organization of Production, Productivity
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 05 Nov 2013 14:36
Last Modified: 05 Nov 2013 14:36
URI: http://eprints.imtlucca.it/id/eprint/1862

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