The Institutional Framework as a competitiveness factor in Latin America
Authors
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Luis Felipe Llanos Reynoso
chool of Economics and Business. Anahuac University
http://orcid.org/0000-0002-8984-6314
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Alfonso Brown del Rivero
School of Economics and Business, Anahuac University
http://orcid.org/0000-0003-4370-3892
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Hugo Javier Fuentes Castro
School of Social Sciences and Government. Monterrey Institute of Technology and Higher Education
http://orcid.org/0000-0001-7221-6490
Abstract
This document objective is to analyze the performance of selected Latin American countries in relation to their institutional framework, that is to say their legal systems, rules, norms and other regulatory provisions. These elements define, to large extent, the functioning and performance of markets linked to good and services, labor and financial systems. Specifically, by means of a factorial analysis along with a clustering process, the most significant explanatory variables on the trend and behavior of six out of 12 pillars for competitiveness as stated by the World Economic Forum have been identified and, likewise, the countries have been classified into a homogenous regional subgroups according to their performance.Keywords:
institutions, competitiveness, evaluation, World Competitiveness ReportReferences
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Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge, Massachusetts: Harvard University Press.
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Santana, Ó.F. (1991). El análisis de cluster: aplicación, interpretación y validación. Papers, Revista de Sociología, 37, 65-76. DOI: 10.5565/rev/papers/v37n0.1596
Stigler, G. (1971). The Theory of Economic Regulation. Bell’s Journal of Economics and Management Science, 2(1), 3-21. DOI: 10.2307/3003160
Thompson, E.R. (2004). National Competitiveness: A Question of Cost Conditions or Institutional Circumstances? British Journal of Management, 15(3), 197-218. DOI: 10.1111/j.1467-8551.2004.00415.x
Tullock, G. (1989). The Economics of Special Privilege and Rent Seeking. Norwell, Massachusetts: Kluwer Academic Publishers.
Vickers, J., & Yarrow, G. (1988). Privatization: An Economic Analysis. Cambridge, Massachusetts: The MIT Press.
Voigt, S. (2013). How (not) measure institutions. Journal of Institutional Economics, 9(1), 1-26. DOI: 10.1017/S1744137412000148
WEF. (2018a). The Global Competitiveness Index Historical Dataset © 2007-2017 World Economic Forum, Version 20180712. Recuperado de: http://www3.weforum.org/docs/GCR2017-2018/GCI_Dataset_2007-2017.xlsx
WEF. (2018b). The Global Competitiveness Report 2018. World Economic Forum. Recuperado de: https://es.weforum.org/reports/the-global-competitveness-report-2018
Williamson, O.E. (1975). Market and Hierarchies: Analysis and Antitrust Implications. New York: Macmillan Publishers.
Aldy, J.E. (2018). Evaluating the performance of regulations and regulatory institutions. In C. Ménard and M. M. Shirley (Ed.), A research Agenda for New Institutional Economics (pp. 34-41). Cheltenham, UK: Edward Elgar Publishing.
Aldy, J.E. (2014). Learning from Experience: An assessment of the Retrospective Reviews of Agency Rules and the Evidence for Improving the Design and implementation of regulatory policy. Report produced for the Administrative Conference of the United States. Washington, D.C. (November 18, 2014). Retrieved from: https://dash.harvard.edu/handle/1/23936082
Becker, G. S. (1983). A theory of Competition among Pressure Groups for Political Influence, Quarterly Journal of Economics, pp. 371-400. DOI: 10.2307/1886017
Benham, A., & L. Benham (2001). The Costs of Exchange. Ronald Coase Institute, Working Paper Series, No. 1. Retrieved: http://www.coase.org/workingpapers/wp-1.pdf
Blalock, H. M. (1966). Estadística Social. Ciudad de México, México: Fondo de Cultura Económica.
Coase, R. (1937). The Nature of the Firm, Economica, 4, 386-405. Está traducido al español en Roemer, Andrés (Comp.) Derecho y Economía: Una revisión de la literatura, FCE, 2000.
Coase, R. (1960). The Problem of Social Cost, Journal of Law and Economics, 3, 1-44. Está traducido al español en Roemer, Andrés (Comp.) Derecho y Economía: Una revisión de la literatura, FCE, 2000.
Coase, R. (1998). The New Institutional Economics. The American Economic Review, 88(2), 72-74. https://www.jstor.org/stable/116895
Demsetz, H. (1967). Toward a Theory of Property Rights. The American Economic Review, 57(2), 347-359. https://www.jstor.org/stable/1821637
Floyd, F.J., & Widaman, K.F. (1995). Factor analysis in the development and refinement of clinical assessment instruments. Psychological Assessment, 7(3), 286–299. DOI: 10.1037/1040-3590.7.3.286
Furubotn, E. G., & Richter, R. (2000). Institutions and Economic Theory. The Contribution of the New Institutional Economics. Ann Arbor, Michigan: The University of Michigan Press.
Ghertman, M. (2009). The puzzle of regulation, deregulation and reregulation. In C. Menard and M. Ghertman (Ed.), Regulation, Deregulation, Reregulation. Institutional Perspectives (pp. 351-374). Cheltenham, UK: Edward Elgar Publishing.
Guasch, L.J., & Hahn, R. (1999). The Costs and Benefits of Regulation: Implications for Developing Countries. World Bank Research Observer, 14(1), 137–158. https://www.jstor.org/stable/3986542
Guerriero, C. (2018). Questions of property rights. En C. Ménard y M. M. Shirley, A research Agenda for New Institutional Economics (pp. 111-118). Cheltenham, UK. Edward Elgar Publishing.
Henisz, W.J. (2003). The Institutional Environment for Economic Growth. Economics and Politics, 12(1), 1-31. DOI: 10.1111/1468-0343.00066
Kahn, J.H. (2006). Factor analysis in Counseling Psychology research, training and practice. The Counseling Psychologist, 34(5), 1-36. DOI: 10.1177/0011000006286347
Kumar, V., Mudambi, R., & Gray, S. (2013). Internationalization, Innovation and Institutions: The 3I´s Underpinning the Competitiveness of Emerging Market Firms. Journal of International Management, 19(3), 203-206. DOI: 10.1016/j.intman.2013.03.005
North, D. (1991). Institutions, Institutional Change and Economic Performance. Cambridge, Massachusetts: Cambridge University Press.
Ménard, C. (2001). Methodological Issues in New Institutional Economics. Journal of Economic Methodology, 8(1), 85-92. DOI: 10.1080/13501780010023243
Ménard, C. (2004). The Economics of Hybrid Organizations. Journal of Institutional and Theoretical Economics, 160(3), 345-376. https://www.jstor.org/stable/40752467
Ménard, C. y Shirley, M.M. (2018). Reserch Agenda for New Institutional Economics. En C. Ménard y M. M. Shirley, A research Agenda for New Institutional Economics (pp. 1- 8). Cheltenham, UK. Edward Elgar Publishing.
Milgrom, P., & Roberts, J. (1992). Economics, Organization and Management. New Jersey, USA: Prentice-Hall.
Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge, Massachusetts: Harvard University Press.
Olson, M. (1982). The Rise and Declining of Nations: Economic Growth, Stagflation and Social Rigidities. New Haven, Connecticut: Yale University Press.
Santana, Ó.F. (1991). El análisis de cluster: aplicación, interpretación y validación. Papers, Revista de Sociología, 37, 65-76. DOI: 10.5565/rev/papers/v37n0.1596
Stigler, G. (1971). The Theory of Economic Regulation. Bell’s Journal of Economics and Management Science, 2(1), 3-21. DOI: 10.2307/3003160
Thompson, E.R. (2004). National Competitiveness: A Question of Cost Conditions or Institutional Circumstances? British Journal of Management, 15(3), 197-218. DOI: 10.1111/j.1467-8551.2004.00415.x
Tullock, G. (1989). The Economics of Special Privilege and Rent Seeking. Norwell, Massachusetts: Kluwer Academic Publishers.
Vickers, J., & Yarrow, G. (1988). Privatization: An Economic Analysis. Cambridge, Massachusetts: The MIT Press.
Voigt, S. (2013). How (not) measure institutions. Journal of Institutional Economics, 9(1), 1-26. DOI: 10.1017/S1744137412000148
WEF. (2018a). The Global Competitiveness Index Historical Dataset © 2007-2017 World Economic Forum, Version 20180712. Recuperado de: http://www3.weforum.org/docs/GCR2017-2018/GCI_Dataset_2007-2017.xlsx
WEF. (2018b). The Global Competitiveness Report 2018. World Economic Forum. Recuperado de: https://es.weforum.org/reports/the-global-competitveness-report-2018
Williamson, O.E. (1975). Market and Hierarchies: Analysis and Antitrust Implications. New York: Macmillan Publishers.
