Argentina's bussiness leadership and its role
in economic development
Juan E. Santarcángelo and Guido Perrone
THE BUSINESS LEADERSHIP IN THE POST-CONVERTIBILITY PERIOD ( ...continuation )

On the other hand, the rise in companies operating in the Mining and Quarrying Sector is interesting for numbers triple within the leadership from the beginning of the 1990s. In 2009 this sector represents 8% of the total companies. Finally, the ‘Other Activity’ field (which includes electricity, gas, water, communications, construction, trade, transport and other services) was reduced by 8% after the devaluation, although in the last year under review regains its share to reach its highest level of 35% of leading companies.

However, although there are no significant changes in the number of companies per economic sector, there are substantial changes during these years in terms of source of capital for the main firms in the economy. This phenomenon can be analyzed in Figure 2, which reveals the level of foreign involvement among Argentine business leaders during the 1990s when local capital represents 56% of total company capital in 1993 and only 32% in 2002. This process was not reverted during the post-Convertibility period; to the contrary, the weight of foreign capital in leading business is consolidated during the period and in the final year under analysis represents around 65%. 8

Figure 2. Number of Companies by Origin of Capital
1993-2009
Source: Prepared by the authors on the basis of data supplied by indec in enge.

8 These findings showing the level of foreign interest in the economy are comparable with those carried out in other research. For more details see Varesi (2010) and Wainer (2011).