Photo: Jeff Barrera/Silicon Valley Rising
Moscow, 3 APR — “News. Economy.” According to the International monetary Fund, the developed countries began to show a negative trend with concentration of influence among large corporations, particularly in the high-tech segment.
In the IMF study, published on Wednesday, April 3, it is noted that over the past few decades in developed countries have “alarming macroeconomic trends” related to the consolidation of companies and increasing their influence.
“The increased interest in this topic evident at the background of the growth of corporate giants, particularly in the IT industry, but also because of the alarming macroeconomic trends in developed economies over the last three decades. These trends include: the slow growth of investment, despite the decline in the cost of borrowed capital, and higher expected returns on investment, which is reflected in the ratio of the market value of companies relative to the book value of their fixed capital (the so-called Tobin’s Coefficient); the growing divergence between the generally stable level of return of productive capital and the low yields for safe assets such as government bonds and bonds of the strongest companies; the growing gap between the financial and productive wealth; the fall in labor income share and rising inequality in income”. As noted, these trends were identified on the basis of studies of the dynamics of financial indicators, with nearly 1 million companies in 27 countries.
The Portal “News. The economy” has previously noted that the giant industrial conglomerates now virtually ceased to exist. However, over the last several decades in the IT sector there were corporations that may well be considered conglomerates of the XXI century — with the ever-increasing spectrum of their aspirations to capture new areas of provision of goods and services.
Aggressive patent strategy coupled with a huge amount of its own cash and the ability to absorb small start-UPS allows such corporations as Amazon, Google (the parent company of Google — approx. ed.), Apple and several other companies to more actively participate in a variety of industries that have already moved beyond the online sphere, spreading in retail, telecommunications and other segments.
It is likely that this is only the first of a series of studies that will be conducted in the future on the subject of how the concentration of influence among large companies, particularly in the IT sector, leads to negative consequences, which are often signs of the presence of monopolies.
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