Measuring Institutional Relatedness

This paper is about measuring empirical relatedness to capture the myriad reasons used by firms to combine various businesses in emerging economies as a response to various institutional voids, without giving undue importance to any specific rationale. In this paper there has been a purport to address this lacuna in research by proposing an empirically implementable measure for institutional relatedness having the features described above. It has also been shown that the empirical estimates for India of our measure of relatedness are in consonance with the tendencies observed by studies using the case-study method and seem to be linked with the institutional transitions that have been observed in recent years.[W.P. No. 2009-05-02]