The Institutional Framework as a competitiveness factor in Latin America

Abstract

This document objective is to analyze the performance of selected Latin American countries in relation to their institutional framework, that is to say their legal systems, rules, norms and other regulatory provisions. These elements define, to large extent, the functioning and performance of markets linked to good and services, labor and financial systems. Specifically, by means of a factorial analysis along with a clustering process, the most significant explanatory variables on the trend and behavior of six out of 12 pillars for competitiveness as stated by the World Economic Forum have been identified and, likewise, the countries have been classified into a homogenous regional subgroups according to their performance.