By Benedicte Bull
This publication investigates important America's political economic climate noticeable during the lens of its robust enterprise teams. It presents targeted perception into their suggestions whilst faced with a globalized economic climate, their influence on improvement of the isthmus, and the way they form the political and financial associations governing neighborhood forms of capitalism.
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Extra info for Business Groups and Transnational Capitalism in Central America: Economic and Political Strategies
The diagram points out the four main dimensions that are relevant for our study and that are typically discussed in the literature: (a) the institutional context of a national economy; (b) the business strategies adopted by DBGs; (c) the effects of these strategies on economic development; (d) the process of institutional change and market development. The various arrows in the figure point out causal links between the dimensions, that is, representing the dynamic process of interaction (co-evolution) between groups’ strategies, on the one hand, and institutional patterns, on the other.
The Central American DBGs are concentrated in four types of service: (1) construction and real estate, (2) finance, (3) retail and wholesale, and (4) tourism and restaurants. The sector in which the largest number of groups is present is construction and real estate. Of the groups analyzed here, 67 percent have major investments in this sector, and in Nicaragua the number reaches 83 percent. The construction and real estate sector is characterized by possibly requiring low levels of initial capital commitment and technology, but high levels of local knowledge of land value and suppliers as well as contacts necessary to acquire permissions.
We made use of six principal sources of data. First, where possible, we used public registries. These are available mainly in the company register in Panama. There are also some data (on company ownership and composition of boards) in the Mercantile Register in the National Center for Registries (CNR) in El Salvador. Second, we used company websites and the websites of business associations. Particularly export associations maintain useful websites with overviews of their member companies, but some other organizations also make such information available.