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Measuring Institutional Relatedness


  • Rakesh Basant


  • Karthik Dhandapani


This paper is about measuring empirical relatedness to capture the myriad reasons used by firms to combine various businesses in emerging economies as a response to various institutional voids, without giving undue importance to any specific rationale. In this paper there has been a purport to address this lacuna in research by proposing an empirically implementable measure for institutional relatedness having the features described above. It has also been shown that the empirical estimates for India of our measure of relatedness are in consonance with the tendencies observed by studies using the case-study method and seem to be linked with the institutional transitions that have been observed in recent years.[W.P. No. 2009-05-02]

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  • Rakesh Basant & Karthik Dhandapani, 2010. "Measuring Institutional Relatedness," Working Papers id:2543, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2543
    Note: Institutional Papers

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    12. Ghemawat, Pankaj & Khanna, Tarun, 1998. "The Nature of Diversified Business Groups: A Research Design and Two Case Studies," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 35-61, March.
    13. Tarun Khanna & Yishay Yafeh, 2005. "Business Groups and Risk Sharing around the World," The Journal of Business, University of Chicago Press, vol. 78(1), pages 301-340, January.
    14. Lucia Piscitello, 2004. "Corporate diversification, coherence and economic performance," Industrial and Corporate Change, Oxford University Press, vol. 13(5), pages 757-787, October.
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    More about this item


    measuring; empirical; relatedness; capture; myriad; lacuna; implementable; case-study; institutional transitions; observed; recent years;

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