Prague Economic Papers 2022, 31(2):143-168 | DOI: 10.18267/j.pep.800

Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?

Ömer T. Doruk ORCID...a,b
a Adana Alparslan Türkeş Science and Technology University, Adana, Turkey
b Global Labor Organization (GLO) Fellow, GLO, Essen, Germany

While profit persistence has been widely examined in the current literature, there have been no extensive studies on the link between business group membership and profit persistence on an emerging market. Using panel data econometric methods, this article examines the link between profit persistence and membership in a large industrialists' group, also known as the TUSIAD (Turkish Industrialists' and Businessmen's Foundation), in the Turkish manufacturing sector in the period 1990-2017. The findings show that the re- lative magnitude of profit persistence of firms with TUSIAD membership is higher than those without TUSIAD membership in the Turkish manufacturing sector.

Keywords: Profit persistence, business group membership, Turkish manufacturing sector
JEL classification: L16, L19, L69

Received: November 9, 2021; Revised: January 29, 2022; Accepted: March 3, 2022; Prepublished online: May 6, 2022; Published: May 9, 2022  Show citation

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Doruk, Ö.T. (2022). Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power? Prague Economic Papers, 31(2), 143-168. doi: 10.18267/j.pep.800
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