Changes in Peru’s Corporate Networks and the Consolidation of Economic Groups, Peru 1944-2014

Martin Monsalve-Zanatti and Abel Puerta-Alarcón

This study is part of ongoing research on the structure of corporate networks in Peru from 1940 to 2014. In our study, we found that economic groups – through their financial enterprises – are the base of the network. Nevertheless, this structure has shown significant variation over time. First, our research shows that the network slowly lost density, both on the level of entrepreneurs or boards of directors (starting in 1981) and of companies (from 1995). This process brought with it the formation of clusters starting in 2001. These correspond to companies or directors of the same economic group, which implies that the level of connectivity among them has been decreasing.  Second, we found that during the first period, 1944-1963, an important proportion of directors were to be found among both the eigenvector and betweenness Top 25 positions. In contrast, starting in 1979, the situation changed completely and it was rare to find the same directors in important eigenvectors and betweenness positions. We did find that there was a tendency for the same directors to remain among the top positions in eigenvector ranking while those who occupied a position of betweenness changed constantly.