The evolution and takeoff of the Ecuadorian economic groups

• Published in: Economies 2021-12, Vol.9 (4), p.1-16
• Main Authors: Tulcanaza-Prieto, Ana Belén, Morocho-Cayamcela, Manuel Eugenio
• Format: Article
• Language: English
• Subjects: American dollar; Economic concentration; economic groups; economic power; Ecuador; family firms; GDP; Gross Domestic Product; Industrial development; Latin America; Literature reviews; Nation states; Politics
• ISSN: 2227-7099; 2227-7099
• DOI: 10.3390/economies9040188

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.