Leviathan in Business: Varieties of State Capitalism and Their Implications for Economic Performance

By Aldo Musacchio, Sérgio Giovanetti Lazzarini. 2012

119 citations recorded by the source corpus.

In this paper we document the extent and reach of state capitalism around the world and explore its economic implications. We focus on governmental provision of capital to corporations – either equity or debt – as a defining feature of state capitalism. We present a stylized distinction between two broad, general varieties of state capitalism: one through majority control of companies (e.g. state-controlled SOEs) and a hybrid form that relies on minority investments in companies by development banks, pension funds, sovereign wealth funds, and the government itself. We label these two alternative modes Leviathan as a majority investor and Leviathan as a minority investor, respectively. Next we differentiate between these two modes by describing their key fundamental traits and the conditions that should make each mode more conducive to development and superior economic performance.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/56cb4a24693c6f502026eeb176685f9453f25ce7

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Citations in the corpus

Toward resource independence – Why state-owned entities become multinationals: An empirical study of India’s public R&D laboratories (2014, background): “This question has become more important over the past two decades given the “reinvention” of state capitalism, as documented by Musacchio and Lazzarini (2012). This line of questioning in international business dates back to Vernon (1979), who proposed that SOEs create resource independence from hom”
An anatomy of state control in the globalization of state-owned enterprises (2015, methodology): “WIND, CSMAR, Datastream B. Explanatory variables State control Government ownership Measured as the proportion of the firm’s total shares owned by the central or local government or authorities (Cui & Jiang, 2012; Musacchio & Lazzarini, 2012).”
Domestic structures, foreign economic policies and global economic order: Implications from the rise of large emerging economies (2015, unknown): “…South Africa (Becker, 2013a; Boschi and Santana, 2012; Bresser-Pereira, 2012; Condé and Delgado, 2009; Ebenau, 2012; Kennedy, 2011; Mazumdar, 2010; Musacchio and Lazzarini, 2012; Padayachee, 2013; Schmalz and Ebenau, 2012; Schneider, 2013; Witt and Redding, 2014; see also the special issue of DMS…”