Emerging Markets and Emerging-Market Firms
The global marketplace is changing rapidly. Developed economies’ share of world GDP, which was over 80 percent in 1990, is expected to shrink to about 50 percent by 2018. This change is almost entirely due to the rise of emerging market economies—those with low to middle per capita income that are growing quickly, usually due to economic developments and reforms.
This shift in global consumption—from developed to developing economies—coincides with the rise of multinational corporations in developing economies. While they made up only 4 per cent of the Fortune Global 500 firms in 1995, they now comprise more than a quarter of the list. Many are family-owned business groups, a unique business structure that is common in emerging economies.
Dr. Ravee Chittoor, Canada Research Chair in Global Economy, is studying emerging-market economies and emerging-market multinationals. He aims to understand how institutions and the institutional environment shape market structures and firms’ strategies.
Chittoor and his research team hope to improve our knowledge of three areas: the institutional environments in emerging economies; the globalization strategies used by emerging-economy multinationals; and the consequences of these firms’ affiliations with family-owned business groups.
This work will provide valuable business insights to the managers and leaders of Canada’s global firms, for whom emerging-market economies are increasingly vital.