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Institutions and national development in Latin America: a comparative study.

Alejandro Portes1, Lori D Smith1

  • 1Princeton University.

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|November 7, 2015
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Summary

This study defines institutions for national development and analyzes their impact. Key findings reveal differences in institutional quality across countries and between economic versus public service organizations.

Keywords:
Boolean algebraLatin Americadevelopmentinstitutionsorganizations

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Area of Science:

  • Socio-economics
  • Political Science
  • Development Studies

Background:

  • Existing literature on institutions and national development lacks clear definitions and relies on reputational indices.
  • Current research often uses countries as the primary unit of analysis, limiting subnational insights.

Purpose of the Study:

  • To propose a rigorous, measurable definition of institutions for national development.
  • To develop and apply a methodology for studying institutional impact at national and subnational levels.
  • To identify factors influencing the developmental role of specific institutions.

Main Methods:

  • Comparative case study of five strategic organizations (federal agencies, public administrative bodies, stock exchanges) in five Latin American countries.
  • Utilized algebraic methods developed by Ragin for hypothesis testing.
  • Analyzed institutional quality differences between economic-focused and service-oriented organizations.

Main Results:

  • Identified distinct patterns of institutional quality between economically-oriented institutions and those providing basic public services.
  • Observed consistent variations in institutional quality across countries, irrespective of similar economic development levels.
  • Tested six hypotheses regarding determinants of institutional developmental character.

Conclusions:

  • The study provides a refined framework for defining and measuring institutions in national development research.
  • Findings highlight the importance of institutional type and national context in development outcomes.
  • Results offer implications for theoretical advancements and methodological improvements in the field.