The continuing dominance of highly-diversified business groups in many emerging countries is a result of the less developed capital and labor markets in these countries.

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Highly-diversified business groups in emerging countries are able to exploit the less developed capital and labor markets to their advantage, which allows them to maintain their dominance in various sectors of the economy. These business groups often have access to informal networks and relationships that help them to secure financing, hire and retain talented employees, and navigate complex regulatory environments. Additionally, they are able to leverage their scale and scope to achieve greater efficiency and competitiveness, which further reinforces their dominant position in the market. Despite challenges from international competitors and changing market conditions, these diversified business groups are likely to continue to play a significant role in emerging economies for the foreseeable future.

The Continuing Dominance of Highly-Diversified Business Groups in Many Emerging