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Institutional framework and governance in Latin America

Gilberto Cárdenas (Department of Economics and Public Finance, Universidad Autónoma de Madrid, Madrid, Spain)
Sofía García (Department of Applied Economics, Universidad Autónoma de Madrid, Madrid, Spain)
Alvaro Salas (Department of Economics and Public Finance, Universidad Autónoma de Madrid, Madrid, Spain)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 29 November 2018

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Abstract

Purpose

The purpose of this paper is to provide an analysis of the Institutional Framework and Governance in Latin America, which aims at detecting similarities or differences among the countries of the region.

Design/methodology/approach

The objective of the research will be achieved through the application of multivariate factor analysis and cluster analysis techniques.

Findings

The paper shows the importance of the institutional framework and governance for the countries of Latin America and demonstrates the heterogeneity in the areas of institutions and governance in the region. The paper also confirms the presence of differentiated groups of countries that can and should collaborate with each other to enhance the socio-economic development of the region in a globalized context.

Research limitations/implications

Due to the limited Latin America countries example in this paper, the authors consider for future studies would be to enlarge the number of countries and to implement same study to Asian countries.

Practical implications

The main contribution of this study in practice is that by classifying countries into clusters with similarities and differences, this study allows politicians and the institutional leaders to redesign current and/or formulate new policies aimed at institutional quality and good governance. In addition, results of the study should be taken into account by institutions such as the International Monetary Fund or the World Bank when deciding on multilateral support or when taking financing decisions as the type of support and the conditions applied should be differentiated according to the cluster in question. Also, in the context of academic research, the clusters will allow comparative studies that can assess the impact of the institutional framework and other variables on indicators such as direct foreign investment, economic growth or sociological ones, such as poverty, the distribution of income, etc.

Originality/value

This paper provides the analysis of the Institutional Framework and Governance in Latin America under the multivariate analysis approach.

Keywords

Citation

Cárdenas, G., García, S. and Salas, A. (2018), "Institutional framework and governance in Latin America", International Journal of Emerging Markets, Vol. 13 No. 5, pp. 1088-1107. https://doi.org/10.1108/IJoEM-09-2017-0371

Publisher

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Emerald Publishing Limited

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