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Full-Text Articles in Social and Behavioral Sciences
Study On Crime And Investment In Latin America And The Caribbean, Luisa Blanco, Christabel Dadzie, Coline Dony
Study On Crime And Investment In Latin America And The Caribbean, Luisa Blanco, Christabel Dadzie, Coline Dony
Luisa Blanco
Investment is a key determinant of economic growth. This relationship underpins the growth diagnostic and constraints analysis methodology used by the Millennium Challenge Corporation (MCC) and United States Government Partnership for Growth initiative with the purpose of identifying the binding constraints to growth in a given country. Recent growth diagnostics undertaken for El Salvador (2011), Guatemala (2013), and Honduras (2013) find crime and citizen insecurity to be binding constraints to growth and investment in those countries (Acevedo et al. 2011; World Bank, 2012). The approaches taken in these growth diagnostic analyses are based on indirect proxies and shadow prices of …
Equity Commitment Under Uncertainty: A Hierarchical Model Of Real Option Entry Mode Choices, Luisa Blanco, Rossitza Wooster, W. Charles Sawyer
Equity Commitment Under Uncertainty: A Hierarchical Model Of Real Option Entry Mode Choices, Luisa Blanco, Rossitza Wooster, W. Charles Sawyer
Luisa Blanco
We develop a real option hierarchical model of entry mode choice and test predictions using a sample of US companies in Latin America and the Caribbean between 1980 and 2005. Probit results indicate that the choice between a real option non-equity mode and equity commitment is influenced by previous acquisition experience, R&D and advertising intensities, and country risk. The choice of the more flexible real option JV mode over WOEs is positively related to greater firm size and market-to-book ratio in countries with better infrastructure. In contrast, greater marketing intensity and lower country risk encourage WOEs.