The Evolution and Takeoff of the Ecuadorian Economic Groups

Ana Belén Tulcanaza-Prieto and Manuel Eugenio Morocho-Cayamcela
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Ana Belén Tulcanaza-Prieto: Escuela de Negocios, Universidad de Las Américas, UDLA, Vía a Nayón, Quito 170124, Ecuador
Manuel Eugenio Morocho-Cayamcela: School of Mathematical and Computational Sciences, Yachay Tech University, Hda. San José s/n y Proyecto Yachay, Urcuquí 100119, Ecuador

Economies, 2021, vol. 9, issue 4, 1-16

Abstract: An economic group is a collection of parent and subsidiary corporations that operates as a single economic organism under the same legislature of control. The decisions taken by the economic groups in any country are among the most influential factors that impact its market and the country’s economic political scenario. This work studies the impact of the Ecuadorian economic groups from 2015 to 2019, where a historical peak of 300 economic groups was reached. However, the taxes representativeness of the Ecuadorian economic groups remained stable during the same period of analysis. We analyzed the financial and fiscal variables of the Ecuadorian ranking of firms, and detected the following of its economic groups: (i) They are still concentrating wealth despite the implementation of hard government policies to transparent the financial and economic information; (ii) They tend to compete in oligopolistic markets, given that their economic and financial decisions are interconnected with their family firms or consortium groups; (iii) They operate in a behavioral nature that follows a linear association between the total income, total assets, total equity, and total tax collection. We hope this work will serve as a future reference for researchers focused on the economic groups of Ecuador and Latin American countries.

Keywords: economic groups; family firms; economic concentration; economic power; Latin America; Ecuador (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:9:y:2021:i:4:p:188-:d:693121

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