This paper, titled "Business Groups in Emerging Markets: Paragons or Parasites?" by Tarun Khanna and Yishay P. Yafeh, explores the role and impact of business groups in emerging markets. Business groups, consisting of legally independent firms operating in multiple markets, are prevalent in many countries and have significant economic implications. The authors review existing literature on business groups, focusing on their diversified nature, conflicts between controlling and minority shareholders, and their political economy. They also discuss other perspectives on business groups, such as their role as quasi-venture capitalists or family-based structures. The paper highlights the biases in the literature, including the lack of discussion on the origins of business groups and the assumption that rent-seeking is the only feasible political economy equilibrium. It suggests that business groups can play both positive and negative roles, depending on the economic and institutional environment. The authors propose new research directions, emphasizing the need to understand how business groups shape their operating environment and the importance of considering the dynamic and historical context of these groups.This paper, titled "Business Groups in Emerging Markets: Paragons or Parasites?" by Tarun Khanna and Yishay P. Yafeh, explores the role and impact of business groups in emerging markets. Business groups, consisting of legally independent firms operating in multiple markets, are prevalent in many countries and have significant economic implications. The authors review existing literature on business groups, focusing on their diversified nature, conflicts between controlling and minority shareholders, and their political economy. They also discuss other perspectives on business groups, such as their role as quasi-venture capitalists or family-based structures. The paper highlights the biases in the literature, including the lack of discussion on the origins of business groups and the assumption that rent-seeking is the only feasible political economy equilibrium. It suggests that business groups can play both positive and negative roles, depending on the economic and institutional environment. The authors propose new research directions, emphasizing the need to understand how business groups shape their operating environment and the importance of considering the dynamic and historical context of these groups.