What is it about?
We study whether good institutions and government management practices in cities can promote the arrival of fast-food franchises. Data provided by a census of city governments in Peru is used to construct different measures of the quality of local institutions, each related to a particular dimension of the local government (information systems, managerial instruments to foster local development, and result-based management systems). Based on the significance of several econometric estimations we conclude that good management practices are indeed effective to attract fast-food franchises to the city.
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Why is it important?
Our econometric specification allows us to distinguish the effect of institutional characteristics on (i) the absence or presence of fast-food franchises; (ii) the number of franchises given that franchisors have decided to grant franchises in the city. We identify which institutional characteristics promote the presence of franchises and which characteristics rise its number. Thus, our study can be of particular interest to local policymakers seeking to foster economic development in their districts.
Perspectives
This research helped me to see in a practical way the importance of "thinking globally but acting locally," particularly when it comes to promoting economic development.
Esteban Colla-De-Robertis
Universidad Panamericana
I hope that the policy implications of this article will help politicy-makers to put more emphasis on the instruments to improve the quality of institutions to bring about greater investmen in the districts of Peru.
Sandro Navarro
Universidad de Piura
Read the Original
This page is a summary of: Local institutions in Peru and the presence and number of fast-food outlets, Management Research The Journal of the Iberoamerican Academy of Management, August 2017, Emerald,
DOI: 10.1108/mrjiam-06-2017-0755.
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