Production structure, employment, and corporate governance

This chapter describes the main characteristics of the productive and financial structures that differentiate our ideal-typical paths of more or less dynamic and inclusive growth. There is a strong presence of small businesses in the non-inclusive low growth economies (NILG) as a proxy for family governance. In the dualistic inclusive growth (DIG) countries, the most prominent companies have a significant weight; relations with banking institutions are structured in the medium to long term, often with forms of participation in the ownership of companies and a greater centrality of financial intermediation emerges. The egalitarian inclusive growth (EIG) economies show a more significant presence of state enterprises, but, more generally, the importance of the banking system is confirmed. In the non-inclusive growth (NIG), there is the presence of public companies, a greater centrality of the stock exchange and the stock market under the pressure of governance devoted to the creation of shareholder value, and a lower employee presence in the firm’s governance. The analysis shows different inequality trends and presents a high institutional complementarity with the other policy arenas discussed in the volume.