Institutional quality and agglomeration of fast food multinationals in Latin American cities

2017 ◽  
Vol 15 (3) ◽  
pp. 251-267
Author(s):  
Fernando Robles
Keyword(s):  
Latin America ◽  
Latin American ◽  
Fast Food ◽  
Institutional Quality ◽  
Location Decision ◽  
Content Type ◽  
Food Networks ◽  
American Cities ◽  
The City

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.

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

2017 ◽  
Vol 15 (3) ◽  
pp. 338-376
Author(s):  
Esteban Colla-De-Robertis ◽  
Sandro Navarro Castañeda
Keyword(s):  
Principal Component Analysis ◽  
Urban Development ◽  
Fast Food ◽  
Institutional Quality ◽  
Principal Component ◽  
Local Institutions ◽  
Urban District ◽  
Content Type ◽  
Food Outlets

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.

scholarly journals Latin American Cities: From Subservient Reproductions to Intercontinental Dialogues

Humanities ◽  
2019 ◽  
Vol 8 (1) ◽  
pp. 18 ◽  
Author(s):  
Clovis Ultramari ◽  
Fernanda Cantarim ◽  
Manoela Jazar
Keyword(s):  
Latin America ◽  
Latin American ◽  
Graduate Programs ◽  
Methodological Approach ◽  
Time Frame ◽  
The Past ◽  
Academic Exchange ◽  
Scientific Institutions ◽  
American Cities ◽  
The City

This paper investigates the circulation of ideas regarding the city among selected countries in Latin America. It discusses convergences between academic and scientific institutions and investigative weakness in partnerships between Brazil, Argentina, Chile, Colombia, and Mexico. It identifies two historical moments: one of vertical dialogues between Latin America and central countries in the elaboration of urban plans (20th century) and another of contemporary academic exchange signalling a horizontal dialogue that is fragile and sporadic but distinct from those observed in the past. Empirical reference is obtained from the analysis of scientific events and papers published by distinguished post-graduate programs concerning urban topics in selected countries, during the time frame of 2000–2015. The methodological approach is based on a bibliographic review and content analysis. Results indicate that the old “one-way” of transfer of urban planning ideas from central countries to Latin America is changing; slowly, the continent has been growing more independent in terms of knowledge creation and circulation.

Multinational franchise entry and institutional quality: evidence from Mexican cities

2017 ◽  
Vol 15 (3) ◽  
pp. 313-337 ◽  
Author(s):  
Alexandros Fakos ◽  
Maria Merino
Keyword(s):  
Fast Food ◽  
Sample Selection ◽  
National Level ◽  
Institutional Quality ◽  
Foreign Market ◽  
Institutional Factors ◽  
Market Size ◽  
Content Type ◽  
Log Linear ◽  
The City

Purpose The purpose of this paper is to document the extensive heterogeneity in institutions within countries and investigate which institutional factors are the most relevant for international brands. Design/methodology/approach The paper analyzes the entry patterns of three global fast-food franchise networks in 78 Mexican cities using discrete outcome models and ordered probit in particular. To summarize the quantitative importance of the results, the analysis includes also log-linear regressions with Heckman correction for the city observations without franchise presence. Findings Institutional factors are critical for an international franchisor in the decision to enter a new market. The most important institutional quality proxy for franchise entry is the rate of formal employment. The more the informal employment in a city, the lower the number of franchised stores and the lower the probability of brand presence in the city. Research limitations/implications Only three fast-food franchises are included in the paper, which limits the generalization of the results beyond the sector and Mexico. Another limitation of the methodology of this paper is that the authors estimate the effect of institutions on multinational franchise entry conditioning on market size. The issue here is that if institutions increase gross domestic product (GDP) per capita, then the demand for multinational franchises also increases. Such an effect cannot be captured if we condition on market size in our econometric models. This is particularly important for policy-makers aiming to quantify costs and benefits of reforms but not an important consideration for practitioners who might take institutions as given and are mainly interested in entry strategies that maximize profitability. Practical implications Institutional variables, and not only market factors, are critical to understand the entry decision of global franchisors in Mexico. In particular, the extent of informality is relevant in explaining the store location. It is necessary to understand how managers value the quality of institutions and which dimensions are most important for multinationals. In addition, the analysis should be conducted both at the national and sub-national level, given that within-country heterogeneity is prevalent in emerging markets. Social implications Cities must reinforce and communicate their institutional quality to attract foreign investment by franchises in particular. Originality/value We test several dimensions of institutional quality at the urban level as determinants of multinationals? decision to enter a city in a foreign market. We use novel administrative data at the municipality level and we employ econometric model that takes into account the discreetness of entry data and the fact that there are cities with no franchise presence. We control for sample selection, which comes from the zero number of stores in some city observations in the regressions.

Latin American taxi app competition to grow

2017 ◽  
Keyword(s):  
Latin America ◽  
El Salvador ◽  
Business Model ◽  
Latin American ◽  
Smartphone Apps ◽  
Content Type ◽  
Taxi Drivers ◽  
Market Dominance ◽  
New Business ◽  
American Cities

Subject Taxi apps in Latin America. Significance Uber in El Salvador agreed on November 10 to abide by existing operating laws, after Vice Transport Minister Nelson Garcia warned that vehicles could be seized if they did not comply. Driver apps are controversial with traditional transport companies in Latin America, as elsewhere, and legislation often lags behind their new business model, exacerbating tensions with taxi drivers in particular. The service is nevertheless growing rapidly across the region, with local rivals positioning themselves to challenge Uber’s market dominance. Impacts Smartphone apps will grow even further in popularity because they address key needs for urban dwellers. Uber will struggle to shake off safety concerns in many Latin American cities in which it operates. Local rivals will consolidate further in an attempt to compete effectively with Uber.

Southern lights: Metropolitan imaginaries in Latin America

Thesis Eleven ◽  
2021 ◽  
pp. 072551362110439
Author(s):  
Jeremy Smith
Keyword(s):  
Latin America ◽  
Urban Design ◽  
Latin American ◽  
Buenos Aires ◽  
Urban Centers ◽  
Metropolitan Cities ◽  
The Usa ◽  
19Th And 20Th Century ◽  
American Cities

This essay aims to examine metropolitan cities of Latin America with two aspects of the literature in anthropology, history, and sociology in mind. First, the essay addresses an imbalanced focus on cities in the USA and Canada by sketching the significance of migration, creation, and urban development in four major metropolises of Latin America. Second, in place of a framework of urban imaginaries, which has dominated the sociology of Latin American cities in recent years, I argue for a more precise notion of metropolitan imaginaries that better frames the creativity of particular cities and their level of integration into international and regional networks. With this more precise notion, I distinguish southern cities as highly connected places, which attract migrants and bring economic and cultural traffic to their shores, ports, plazas, and streets. They are lively centers of Atlantic modernity with connections that generate greater magnitude for creativity and, as such, bear international significance as places of architecture and urban design. In their informal settlements, impulses of organic creation further distinguish southern metropolises from their North American counterparts. The quality of international and regional connections distinguishes these cities from other urban centers in Latin America, a point underestimated in the literature on urban imaginaries. In this essay, I examine 19th and 20th-century Buenos Aires, Mexico City, São Paulo, and Rio de Janeiro. Each is distinguished from most cities by the magnitude of migration, the diversity of their populations, and the connections they have to global and regional developments. Crucially, each one stands out for the quality and impact of their metropolis-making, particularly in creative architecture and urban design.

scholarly journals Urban Inequality: The City after the 2007 Crisis

Urban Science ◽  
2018 ◽  
Vol 2 (3) ◽  
pp. 62 ◽  
Author(s):  
Jesús González-Pérez
Keyword(s):  
Welfare State ◽  
Latin American ◽  
Poor People ◽  
Investment Funds ◽  
Urban Inequality ◽  
Basic Services ◽  
The Impact ◽  
American Cities ◽  
The City

After the impact of the 2007 crisis and post-crisis austerity policies, cities are being reconfigured under the auspices of inequality. Social divides are widening, and there is a growing population of excluded and poor people. The urban and welfare state crises of the 1980s are currently being replicated, albeit even more acutely, given that the welfare state in many countries is very weak and there are worrying signs of a crisis of democracy. In the present urban order of globalization, new players have emerged from the financial sector, including investment funds and the so-called vulture funds. Our contribution to this Special Issue is an analysis of urban inequality today based on theoretical and empirical research. The issue includes articles on social movements and resistance in Latin American cities, vulnerability in crisis-hit Spanish cities, and the segregation and quality of basic services in US cities.

Slum Neighborhoods in Latin America

1967 ◽  
Vol 9 (4) ◽  
pp. 507-528 ◽  
Author(s):  
Lloyd H. Rogler
Keyword(s):  
Latin America ◽  
Mexico City ◽  
Latin American ◽  
Metropolitan Area ◽  
Buenos Aires ◽  
Rapid Expansion ◽  
Vacant Lots ◽  
Urban Migrants ◽  
American Cities ◽  
The City

In the life of Latin American cities the rapid expansion of slum neighborhoods has emerged as a compelling problem. The inability of city authorities to provide adequate and inexpensive housing for rural-to-urban migrants, as well as for those economically poor persons born and raised in the city, has clashed with the tremendous growth of the population and its drive toward urbanization. The impoverished families must settle wherever they can. Scattered throughout Mexico City, for instance, on vacant lots adjoining factories or on the periphery of the metropolitan area are shack homes built of miscellaneous materials, known as jacales, or the rows of single-story concrete, brick, or adobe dwellings called vecindades. Beyond Mexico City, there are the villas miserias of Buenos Aires, the favelas on the rocky promontories of Rio de Janeiro, the barrios clandestinos of Bogotá, the barriadasmarginales of Lima, the ranchos of Caracas, and the callampas (mushrooms) of Santiago.

scholarly journals Effects of institutional quality and the development of the banking system on corporate debt

2018 ◽  
Vol 23 (44) ◽  
pp. 113-124
Author(s):  
Alvaro Edmundo Tresierra ◽  
Sergio David Reyes
Keyword(s):  
Latin America ◽  
Banking System ◽  
Institutional Quality ◽  
Debt Maturity ◽  
Content Type ◽  
National Institutions ◽  
New Findings ◽  
Banking Development

Purpose This study aims to determine if the quality of national institutions and banking development condition the maturity of debt depending on the horizon of short or long term. Design/methodology/approach Analysis is performed on a sample of 116 nonfinancial companies from Peru and Brazil. The measures of quality of national institutions and banking development were obtained from World Bank data and included factorial analysis for dynamic considerations. Findings The findings, through the treatment of pointed indicators, the factor analysis and the subsequent estimation of a dynamic econometric model, called GMM-SYS, show that institutional quality fosters the maturity of long-term debt and banking development boots short-term financial relations. Research limitations/implications Evaluating different measures of the quality of national institutions and banking development is necessary to demonstrate the robustness of the results beyond the sample evaluated in Latin America. Practical implications The research allows to understand the interaction between national institutions and system banking through debt maturity, and this is useful for establishing common target between both groups. Social implications It is important for corporate finance to understand the mechanisms of the interaction between national institutions and system banking, because this affects internal decisions of firms regarding financial implications. Originality/value The treatment of measures of national institutions and banking development include dynamic considerations, and the application of this study in Latin America provides new findings regarding these kind of indexes and their interaction with firms´ features such as debt maturity.

Latin American universities expand but quality lags

2017 ◽  
Keyword(s):  
Latin America ◽  
Latin American ◽  
High School Graduates ◽  
Tertiary Education ◽  
Research Capacity ◽  
Drop Out ◽  
Content Type ◽  
Research And Innovation ◽  
New Institutions

Subject Tertiary education in Latin America. Significance Between 2000 and 2015, universities in Latin America grew significantly, driven by higher demand from the emerging middle class and more high school graduates. However, the quality of many new institutions remains low, and governments have failed to implement effective regulations. The research capacity of the tertiary system is uneven and concentrated in a few universities in some of the wealthiest countries. Impacts New funding mechanisms are needed to move universities beyond free education for a minority and excessive borrowing for many. More attention will need to be paid to high drop-out rates. Research and innovation will continue to lag across the region.

scholarly journals Non-Pharmacologic Interventions for Caregivers of People With Dementia in Latin America: A Review

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 275-276
Author(s):  
Jose Aravena ◽  
Jean Gajardo ◽  
Laura Gitlin
Keyword(s):  
Quality Of Life ◽  
Latin America ◽  
Depressive Symptoms ◽  
Latin American ◽  
Randomized Clinical Trials ◽  
Social Inequalities ◽  
Neuropsychiatric Symptoms ◽  
People With Dementia ◽  
Person With Dementia

Abstract In a scenario of increasing longevity and social inequalities, Latin-America is an important contributor to the worldwide dementia burden. Caregivers’ health is fundamental to maintain the person with dementia quality of life. However, caregiving is a culturally sensible role that requires tailored solutions. The aim is to synthesize the evidence about non-pharmacologic interventions targeted to caregivers of people with dementia in Latin-American contexts. A comprehensive review of interventions in caregivers and persons with dementia in Latin-American countries was conducted using MEDLINE, Embase, PsycINFO, and Scopus with studies published until January 27th, 2020. Randomized clinical trials of non-pharmacologic interventions targeted to caregivers of people with dementia or dyads where included. Qualitative synthesis of the evidence was presented and analyzed. Overall, 9 pilot RCT were included for the final analysis (6 Brazil, 1 Colombia, 1 Mexico, 1 Perú). The biggest study recruited 69 caregivers and the smallest 13 dyads, with follow-up range of 3-6 months. 5 control groups received at least some other non-standard care type of intervention. 8 were targeted exclusively to caregivers (4 group intervention, 3 individual, and 1 combined) and 1 multicomponent intervention. Most frequent measured outcomes were caregiver’s burden, anxiety, depressive symptoms, and quality of life, and person with dementia neuropsychiatric symptoms. Individual interventions report better results in caregiver parameters such as burden and depressive symptoms and person with dementia neuropsychiatric symptoms. Group interventions presented mixed results. Nevertheless, the quality of evidence was low. There is a critical need to study interventions for caregivers in Latin-American contexts.

Sign in / Sign up

Export Citation Format

Share Document