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Growth and concentration among the leading business groups in Mexico

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  • Del Hierro, Patricia
  • Alarco Tosoni, Germán

Abstract

This article discusses various hypotheses relating to the originand operation of business groups in Mexico, and it proposes a model toexplain the sources of their total asset growth. It highlights their growingcontribution to Mexican gdp, but notes that their shares of employmentand profits are smaller. Over time, sales and assets have clearly tendedto become more concentrated in the largest groups. The paper concludesthat the main financing sources for asset growth between 2005 and 2007were firstly debt and secondly capital contributions from shareholders. Italso finds that the leading groups invest discretely over time and tend to"overinvest" to block the entry of other competitors.

Suggested Citation

  • Del Hierro, Patricia & Alarco Tosoni, Germán, 2010. "Growth and concentration among the leading business groups in Mexico," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:11435
    Note: Includes bibliography
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    References listed on IDEAS

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    1. Ishtiaq P. Mahmood & Will Mitchell, 2004. "Two Faces: Effects of Business Groups on Innovation in Emerging Economies," Management Science, INFORMS, vol. 50(10), pages 1348-1365, October.
    2. Mortimore, Michael & Peres Núñez, Wilson, 2001. "Corporate competitiveness in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Morck, Randall & Nakamura, Masao, 2007. "Business Groups and the Big Push: Meiji Japan's Mass Privatization and Subsequent Growth," Enterprise & Society, Cambridge University Press, vol. 8(3), pages 543-601, September.
    4. Tarun Khanna & Yishay Yafeh, 2007. "Business Groups in Emerging Markets: Paragons or Parasites?," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 331-372, June.
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    Cited by:

    1. Alarco Tosoni, Germán, 2011. "Profit margins, financing and investment in the Peruvian business sector (1998-2008)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

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