Did Business-Group Diversification Fall in Colombia after the Trade Liberalization? (Disminuyo la Diversificación de los Grupos Empresariales Colombianos Después de la Apertura?) (Spanish)

Abstract

The article studies the diversification behavior of four large diversified Colombian business groups five years before and after the 1991 trade opening, as measured by the entropy index. It is shown that the trade opening did not lead the business groups to reduce their diversification but rather to maintain it or even increase it, as they left some sectors but entered new ones that became good opportunities thanks to the privatizations.

Note: Downloadable document is in Spanish.

Keywords: Business Groups, Conglomerates, Trade Opening, Diversification, Corporate Governance

JEL Classification: G32, G34, L16, L25