The PIE-model: Politics – Institutions – Economy

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The PIE-model: Politics – Institutions – Economy

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Title: The PIE-model: Politics – Institutions – Economy
A simple model for analysis of the business environment
Author: Mygind, Niels
Abstract: Societies all over the world are complex systems of human beings interacting with each other for making a living. Understanding these societies is essential for international business whatever the company interacts through foreign trade, outsourcing production or foreign direct investments - FDI. Choice of location makes it necessary to do an analysis of relevant foreign societies. The existing models for these analyses are often too simplified, static and without enough emphasis on key determinants for these societies – their institutions. The quality of institutions is an import part of the explanation for the level of development in different countries (WB 2002, IMF 2005, WEF 2006); but there is no simple link between institutions and economic performance (Rodrik 2004).
URI: http://hdl.handle.net/10398/7062
Date: 2007-12-11

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