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A Note on Relevant Comparisons of Corporations and Countries

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  • Benjamin B. Greene

Abstract

. Attempts to compare the magnitude of corporations and countries are frequently biased by the use of inconsistent measures. While Gross National Product reflects the output obtained from a nation's land, labor and capital resources, corporate sales reflect not only the firm's output but also that of its suppliers. A more realistic picture can be obtained by comparing corporate value added to national output. While available information permits only an approximation of the former, it appears that the average company is responsible for less than 50 percent of the value of the product it sells. The basic conclusion that some firms are in this sense comparable to Nation‐States remains valid. However, the rank of the largest companies relative to countries is reduced substantially.

Suggested Citation

  • Benjamin B. Greene, 1983. "A Note on Relevant Comparisons of Corporations and Countries," American Journal of Economics and Sociology, Wiley Blackwell, vol. 42(1), pages 39-43, January.
    • Handle: RePEc:bla:ajecsc:v:42:y:1983:i:1:p:39-43
    DOI: 10.1111/j.1536-7150.1983.tb01687.x
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    Cited by:

    1. Kreitmeir, David & Lane, Nathaniel & Raschky, Paul A, 2020. "The Value of Names - Civil Society, Information, and Governing Multinationals on the Global Periphery," SocArXiv aw7sq, Center for Open Science.

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