Small Business Economics

, Volume 42, Issue 3, pp 611–620 | Cite as

Can franchising be an economic development strategy? An empirical investigation



Prior research has examined why franchisors expand abroad, but no paper has empirically examined the role of franchising in the macroeconomy of developing nations. In this paper, the pattern of franchising development is statistically analyzed within the context of the general economic development of Latin America. It is found that franchising leads, rather than follows, economic development. Implications for theory and policy are considered.


Franchising Economic development Organizational form Competition International business 

JEL Classification




I thank Pat Kaufmann, Marko Grunhagen, and the editor and referees for helpful comments and suggestions. The remaining errors are mine alone.


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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.College of BusinessUniversity of Illinois Urbana ChampaignChampaignUSA

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