Graduation Year


Document Type




Degree Granting Department

Political Science

Major Professor

Dajin Peng, Ph.D.

Committee Member

Steve Tauber, Ph.D.

Committee Member

Harry Vanden, Ph.D.


informal networks, foreign direct investment, business funding, compadrismo, ethnic Chinese business networks


The purpose of my thesis is to demonstrate the economic development of China and Latin America. My reason for choosing these two regions for my study is because they are both Third World Nations. My intention on writing this thesis is to prove that culture and the informal business networks of China are the major forces of what is driving the Chinese economy ahead of Latin America.

I will explain how the definition of culture ties in with the economic society of both regions. In writing about culture, I will attempt to explain if there really is a difference between trust in each society. To better interpret this thesis, I came up with several variables of economy that will help explain each region's development. These variables are federal direct investment (FDI), labor, and funding of businesses in each region.

In my study, I present the different approaches that are taken by each region to attract FDI. In addition, I will explain how and if informal networking is beneficial to the work force and the funding of businesses in each region.

The majority of my research for this thesis consisted on reviewing past articles of scholarly journals. From these journals I drew conclusions of my own and compared them to other scholars' work. I also analyzed such websites like the International Monetary Fund (IMF) and the World Bank and various others to be able to come up with my own findings necessary to complete my thesis.

To anticipate the conclusion, this thesis notes how important it is for each region to find its own unique way to attract FDI and how culture can impact the development of an economy. In my thesis, I am including the importance of trust in the society and the significance of the informal business networks on the Chinese economy.