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Inclusive institutions and local economic evolution: Perspectives from Guayaquil and Quito

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  • L Carlos Freire-Gibb
  • Luis Tapia Carrillo

Abstract

Urbanization is often related to better economic and living standards and, according to the United Nations, by the mid-21st century, 70% of humankind will live in urban areas. Currently, roughly 80% of the populations in North and South America are urbanized, compared to the global average of 55%. Meanwhile, inequality has also been increasing swiftly, and Latin America is among the most unequal regions in the world. With global urbanization and inequality trends rising, examining the urban areas of a Latin American country could shed light on potential evolution paths. Hence, this article outlines the social and economic evolution of Guayaquil and Quito, the two primary cities of Ecuador. In the 20th century, Guayaquil had economic and demographic advantages; however, Quito has since surpassed Guayaquil on several social, demographic and economic indicators. This article suggests that Guayaquil’s relative stagnation is due to an institutional framework favouring the economic and political elites and supports the argument that inclusive local processes and governance (or the lack thereof) can support (or hinder) local economic development.

Suggested Citation

  • L Carlos Freire-Gibb & Luis Tapia Carrillo, 2019. "Inclusive institutions and local economic evolution: Perspectives from Guayaquil and Quito," Local Economy, London South Bank University, vol. 34(5), pages 471-488, August.
    • Handle: RePEc:sae:loceco:v:34:y:2019:i:5:p:471-488
    DOI: 10.1177/0269094219866118
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    Cited by:

    1. Hodjat Shakiba & Sohrab Delangizan & Yosef Mohamadifar, 2022. "Inclusive urban entrepreneurial ecosystem policies: An application of the meta‐synthesis approach," Poverty & Public Policy, John Wiley & Sons, vol. 14(4), pages 342-380, December.
    2. L Carlos Freire-Gibb & Geoff Gregson, 2019. "Innovation systems and entrepreneurial ecosystems: Implications for policy and practice in Latin America," Local Economy, London South Bank University, vol. 34(8), pages 787-806, December.

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