Local institutions in Peru and the presence and number of fast-food outlets

Author(s):  
Esteban Colla-De-Robertis ◽  
Sandro Navarro Castañeda

Purpose The paper aims to study the role of local institutions in the establishment of fast-food outlets in urban districts of Peru. In most urban districts, there are no fast-food outlets. The authors, therefore, study the effect of institutional quality on the presence or absence of these outlets and the number of outlets if these are present. Design/methodology/approach The theoretical framework in which this paper is based on is the theory of agglomeration, which establishes that firms benefit from being close to each other. In particular, the paper builds on a model of market entry and competition in geographically independent local markets. An explicit expression was found for the equilibrium number of outlets (including zero) as a function of exogenous determinants of the demand for fast-food in each market, available infrastructure and institutional quality of the district’s government. Principal component analysis was used to construct measures of institutional quality based on administrative and organizational characteristics of district’s municipalities. These measures were incorporated as explanatory variables in a zero-inflated Poisson model, which is appropriate to handle count data and to accommodate excess zeros and which also allows the specification of different models for the zero part and the positive part. Findings Institutional quality mainly affects the presence of fast-food outlets in a district. The quality of urban development management and use of information systems are relevant. An institutional variable particularly relevant in explaining the number of outlets is the presence of an investment programming office in the municipality. The authors confirm the general hypothesis of the paper: institutions have a role in explaining both the presence and number of fast-food outlets in a district. Overall, the results of this paper suggest that institutional quality of a municipal district is related to better infrastructure, which lowers the costs of establishing outlets. Research limitations/implications Limitations in the availability of data at the regional and urban district level did not allow the authors to analyze other factors that affect entry decisions in the fast-food industry in Peru, such as controls to prevent corruption, legal uncertainty or crime. Another limitation was the lack of data on entry costs for each franchisee in each urban district. This forced the authors to use public infrastructure characteristics of the district as (imperfect) proxies of the entry costs. Practical implications The instruments of urban development management and information systems can be effective at attracting investment to a district. These tools operate partly through an indirect effect, namely, the improvement of district infrastructure, which is necessary to reduce the costs of establishing companies. There is also synergy between national government’s programs to attract investment and the good institutional quality in local governments. On the contrary, poor local institutions can be an obstacle to the successful implementation of those national programs. Social implications Foreign direct investment has a positive impact on the economic development of a country through knowledge spillovers. Therefore, any administrative reform to make local government practices more efficient can have an indirect impact on development. Originality/value Principal component analysis is a statistical tool that can be important in building good measures of institutional quality by allowing the combination of different observable characteristics into one component that can be interpreted as an operational restriction. The count model allows the use of the primary, easily observable, dependent variable, namely, the number of outlets. Finally, the two-part model makes it possible to discern the effect of institutional quality on the presence or absence of outlets and the number of outlets if these are present.

2019 ◽  
Vol 37 (2) ◽  
pp. 215-228 ◽  
Author(s):  
Samson Oluseun Ojekalu ◽  
Olatoye Ojo ◽  
Timothy Tunde Oladokun ◽  
Sumoila Aremu Olabisi

Purpose The purpose of this paper is to examine factors influencing service quality of the property managers to the occupiers of shopping complexes in Ibadan, Nigeria. This was with a view to providing information that could enhance property management practice. Design/methodology/approach Primary data were used for the study. The study area was stratified into five axes using major roads where shopping complexes were highly concentrated. Systematic sampling technique was used to select 139 out of 276 shopping complexes in the study area. The data obtained were analyzed using mean ranking and principal component analysis. Findings The study found that ineffective employee’s compensation, high employee turnover, lack of continuous improvement culture, inadequate use of employee empowerment, inadequate staff, lack of teamwork, inability to see tenants as customer, lack of motivation, education and training of the property managers and poor planning among others were the most significant factors influencing service quality of the property managers using mean ranking. The study further found that professional and empowerment factor, teamwork and motivation factor, customer related factor, work volume and operation factor, skills and job satisfaction factor, top-management commitment factor, experience and communication factor as well as financial factor were the factors influencing service quality of the property managers using principal component analysis. Practical implications This study will aid the property managers of shopping complexes in identifying areas which needed to be improved upon in order to provide quality service to occupiers thereby enhancing tenant retention and loyalty. Originality/value Previous studies on factors influencing service quality have been focusing on hospitality, healthcare, real estate agency and library industries. This study is one of the very few studies that examined factors influencing service quality of property managers of shopping complex. Also, the paper underlines the need for property managers of shopping complexes to give required attention to factors influencing service quality for enhanced property management practice.


Author(s):  
Fernando Robles

Purpose The purpose of this paper is to explore the location decision of multinationals across major cities in Latin America. Based on agglomeration economics and institutional theory, the paper explores whether institutional quality of a city can temper the attraction of agglomeration factors. Design/method/approach The paper analyzes the geographic dispersion of three global fast-food franchise networks in 45 Latin American cities. The explanatory variables are horizontal aggregation of other multinationals and the institutional quality of a city. The direct and indirect impacts of horizontal agglomeration are explored through negative binomial regression with controls for city population and economic power [gross domestic product (GDP)]. Findings The key finding is that location choice of fast-food networks is driven principally by market conditions and to a lesser extent by horizontal agglomeration. The institutional quality of a city has a positive influence on the agglomeration of fast-food networks. A city with strong institutional quality makes this relation stronger. Research limitations Other multinational and national fast-food franchises are not included in the paper. Future studies should include a greater number of global and local fast-food franchisers. Practical implications The positive reinforcements of agglomeration and strong institution are important for the investment location decision of fast-food multinationals. The institutional quality of the city should be an important consideration in the location decision as it expands regionally and within a country. Smaller cities may not offer the agglomeration advantages of the large metropolitan areas, but their good institutional quality may reduce the business costs for multinationals. Social implications Large cities in Latin America tend to reap the benefits of agglomeration. As a result, smaller secondary cities struggle to be relevant in generating economic activity and attracting private investments. One strategy to achieve relevance is to build strong and transparent institutions and a solid business environment. Originality/value The inclusion of institutional quality at the city level as moderation of the agglomeration factors influencing the location decision of a multinational is original. This paper contributes to our understanding of the importance of regional cities in attracting the investment of multinational firms.


2021 ◽  
Vol 79 (1) ◽  
Author(s):  
Chadia Haddad ◽  
Hala Sacre ◽  
Sahar Obeid ◽  
Pascale Salameh ◽  
Souheil Hallit

Abstract Background In clinical practice, quality of life measures can be used alongside some types of assessment to give valuable information that can identify areas that influence an individual and help the clinician make the best healthcare choices. This study aimed to investigate the psychometric properties of the Arabic version of the 12-item short-form health survey (SF-12) in a sample of Lebanese adults. Methods This cross-sectional study performed between July and November 2019 recruited 269 participants. Cronbach’s alpha was used to assess the reliability of the SF-12 questionnaire, and a factor analysis using the principal component analysis was performed to confirm its construct validity. Results The mean score for the “physical component summary (PCS-12)” was 50.27 ± 8.94 (95 % CI: 49.18–51.36) and for the “Mental component summary (MCS-12)” was 44.95 ± 12.17 (95 % CI: 43.47–46.43). A satisfactory Cronbach’s alpha was found for the two components: MCS (α = 0.707) and PCS (α = 0.743). The principal component analysis converged over a two-factor solution (physical and mental), explaining a total variance of 55.75 %. Correlations between the SF-12 scales and single items were significant, showing a good construct validity. The “physical functioning”, “role physical”, “bodily pain”, and “general health” subscales were highly associated with “PCS-12”, while the “vitality”, “social functioning”, “role emotional”, and “mental health” subscales were more associated with MCS-12. Conclusions The Arabic version of the SF-12 is a reliable, easy-to-use, and valid tool to measure health-related quality of life in the general population. Future studies using a larger sample size and focusing on questionnaire psychometric properties are necessary to confirm our findings.


2017 ◽  
Vol 44 (6) ◽  
pp. 715-731 ◽  
Author(s):  
Ivy Drafor

Purpose The purpose of this paper is to analyse the spatial disparity between rural and urban areas in Ghana using the Ghana Living Standards Survey’s (GLSS) rounds 5 and 6 data to advance the assertion that an endowed rural sector is necessary to promote agricultural development in Ghana. This analysis helps us to know the factors that contribute to the depravity of the rural sectors to inform policy towards development targeting. Design/methodology/approach A multivariate principal component analysis (PCA) and hierarchical cluster analysis were applied to data from the GLSS-5 and GLSS-6 to determine the characteristics of the rural-urban divide in Ghana. Findings The findings reveal that the rural poor also spend 60.3 per cent of their income on food, while the urban dwellers spend 49 per cent, which is an indication of food production capacity. They have low access to information technology facilities, have larger household sizes and lower levels of education. Rural areas depend a lot on firewood for cooking and use solar/dry cell energies and kerosene for lighting which have implications for conserving the environment. Practical implications Developing the rural areas to strengthen agricultural growth and productivity is a necessary condition for eliminating spatial disparities and promoting overall economic development in Ghana. Addressing rural deprivation is important for conserving the environment due to its increased use of fuelwood for cooking. Absence of alternatives to the use of fuelwood weakens the efforts to reduce deforestation. Originality/value The application of PCA to show the factors that contribute to spatial inequality in Ghana using the GLSS-5 and GLSS-6 data is unique. The study provides insights into redefining the framework for national poverty reduction efforts.


2021 ◽  
pp. 232102492110082
Author(s):  
Uttam Kumar Patra ◽  
Suman Paul

Rural infrastructure is fundamental and central to the concept of quality of life as well as human development. The major characteristic of regional development is the constant widening of regional disparity in India after different plan period. Various Finance Commissions and Planning Commissions laid emphasis on the objective of achieving balanced regional development. The article identifies a gap in terms of education, health, communication and financial infrastructure in the study of panchayats of Jungle Mahal blocks. Mapping of regional disparities can aid in effective policymaking at the preliminary stage of planning. Panchayat level inequality has been analysing using dimension index and principal component analysis (PCA). Wide disparities in the availability of rural infrastructure have been pointed out and proper recommendation has also been made to minimise the gap in spatial inequality.


2017 ◽  
Vol 6 (2) ◽  
pp. 242-258 ◽  
Author(s):  
Minh Tam Schlosky ◽  
Andrew Young

Purpose A number of political economy concerns are associated with the provision of foreign aid to developing economies. These concerns suggest that foreign aid is likely to have harmful effects on a recipient’s institutional quality, and that attempts to give aid conditional on policy and institutional reforms are unlikely to succeed. Established in 1996, the Heavily Indebted Poor Country (HIPC) Initiative is a comprehensive, structured attempt to provide multilateral foreign aid conditional on reforms in recipient countries. The purpose of this paper is to evaluate its effectiveness at affecting institutional reform in participating countries. Design/methodology/approach The authors document how participating countries fared in terms of the quality of their policies and institutions. The authors employ the Fraser Institute’s Economic Freedom of the World index as a measure of economic institutions, and the Freedom House political rights (PR) and civil liberties indices as measures of PR and protections. Based on these measures, the authors report unconditional statistics (e.g. average changes) and also regressions of changes in the measures on HIPC Initiative aid allocations and other controls. Findings The authors find that most participating countries experienced either meager increases or outright decreases in institutional quality. The regression results provide no evidence that the Initiative affects meaningful reforms. Originality/value The potential for foreign aid to have deleterious effects on the institutional quality of recipient countries has been of increasing concern to students of economic development. Such effects can have important implications for entrepreneurial activity in these countries. The HIPC Initiative is specifically designed to acknowledge and, indeed, overcome these concerns, leading to actual increases in institutional quality of recipient countries. To the authors’ knowledge, this work is the first to assess whether the promise of the HIPC Initiative is being fulfilled.


2018 ◽  
Vol 120 (2) ◽  
pp. 490-498 ◽  
Author(s):  
Ebrahim Ahmadi ◽  
Mohammad Mosaferi ◽  
Leila Nikniaz ◽  
Jafar Sadegh Tabrizi ◽  
Mohammad Asghari Jafarabadi ◽  
...  

Purpose The purpose of this paper is to investigate the quality of the frying oil used in restaurants, fast food establishments, and confectionary stores. The compliance of used frying oils with the quality standards as determined by the peroxide value (PV) and the total polar materials (TPMs) is investigated by analyzing 375 samples of oil. Design/methodology/approach The PV was measured according to the national standard procedure number 4179, while the TPM was determined using a Testo 270 cooking oil tester. Frying oils with a PV>5 mEq/kg and a TPM>25 percent were considered to be non-edible. For a comparison of groups, the Mann-Whitney and Spearman correlation tests were used, and p<0.05 was considered significant. Findings The maximum TPM and PV recorded for frying oils in fast food restaurants were 97.5 percent and 77.9 mEq/kg, respectively. The results also revealed that 60 percent of samples were non-edible according to the TPM, while 58.9 percent of the oil samples were non-edible because of the PV. TPM and PV correlated well with each other (r=0.99, p<0.001) and with oil replacement intervals (r=0.90, p<0.001). The relationship between the TPM and PV was stronger in the polynomial model than the linear model. The following equation was obtained: peroxide (mEq/kg oil)=0.0043 TPM2 (%)+0.1587 TPM (%)–0.6152. Originality/value Considering the current limitations in official supervision by health authority, on-site self-monitoring of the TPM using the Testo 270 cooking oil tester by sellers as a solution seems a new approach. Food stores, restaurants, and confectionary stores should be equipped with TPM analyzers to determine the quality of the frying oil and the timely replacement of non-edible oils.


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