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'Interlocked' business groups and the state in Chile (1970-2010)

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  • Erica Salvaj
  • Juan Pablo Couyoumdjian

Abstract

In this article we examine the relationship among business groups (BGs) in Chile in the long run, focusing on the relations between the state, viewed as a BG, and privately-owned BGs from 1970 to 2010. Our analysis proceeds within the methodological perspective of interlocking directorates (IDs) analysis. Working with a unique database of the boards of firms affiliated to BGs, we consider IDs as a way to learn about the cohesion and relation between these BGs. We include a period of political change and institutional and economic modernisation in Chile, which also involved a transformation in the character of the entrepreneurial class in the country. We find that the state BG has played an important role in the networks of Chilean capitalism. Our work complements the literature on BGs and state capitalism, showing the rich nature of social networks in a capitalist society.

Suggested Citation

  • Erica Salvaj & Juan Pablo Couyoumdjian, 2016. "'Interlocked' business groups and the state in Chile (1970-2010)," Business History, Taylor & Francis Journals, vol. 58(1), pages 129-148, January.
    • Handle: RePEc:taf:bushst:v:58:y:2016:i:1:p:129-148
    DOI: 10.1080/00076791.2015.1044517
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    Cited by:

    1. Sapinski, Jean Philippe & Carroll, William K., 2017. "Interlocking directorates and corporate networks," SocArXiv 7t8c9, Center for Open Science.
    2. F Aldunate & F GonzÔøΩlez & M Prem & F UrzÔøΩa, 2019. "The Evolution of Ownership Structures: Privatization, Business Groups, and Pyramids," Documentos de Trabajo 17348, Universidad del Rosario.
    3. Aldunate, Felipe & González, Felipe & Prem, Mounu & Urzúa, Francisco, 2020. "Privatization and business groups: Evidence from the Chicago Boys in Chile," Explorations in Economic History, Elsevier, vol. 78(C).
    4. Braun, Matías & Briones, Ignacio & Islas, Gonzalo, 2019. "Interlocking directorates, access to credit, and business performance in Chile during early industrialization," Journal of Business Research, Elsevier, vol. 105(C), pages 381-388.

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