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How Do Business Schools compete in Latin America?Stability and Best Predictors of Success for the AmericaEconomia MBA Ranking

Quinteros, María José and Sanchez, Rafael and Villena, Mauricio G. (2019): How Do Business Schools compete in Latin America?Stability and Best Predictors of Success for the AmericaEconomia MBA Ranking.

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Abstract

The main aim of this paper is to present a longitudinal analysis of the changes in the AmericaEconomia MBA Rankings for the period 2005-2014. The AmericaEconomia ranking was the first international ranking specifically devoted to Latin American business schools, and with data gathered from this ranking we build a panel to study its stability and the main determinants of a school’s position in such ranking during the period under study. The final aim of this study is to examine the reliability of the AmericaEconomia ranking, that is whether changes in the ranking positions are not just due to white noise, and compare its stability with those of the US and other global rankings. We also want to empirically determine which are the key quality variables this ranking is promoting for Latin America Business Schools and the evolution of these business schools during the period under study. Unlike previous literature that usually considers dynamic Tobit models for ranking analysis, we put forward an alternative methodology based on a system GMM estimator with first-differenced instruments. We argue that dynamic Tobit models are appropriate only if you have truncated data about the ranking variable but full data on Business Schools variables. This is not always the case, as in our work in which we only have a subsample of Latin American Business Schools, those included in the AmericaEconomia ranking.

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