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Corrupcion Y Concentracion Del Ingreso: Su Impacto En Las Empresas Latinoamericanas

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Author Info
JAIME ORTIZ ARIZABALO () (Division of International Programs y College of Business Administration, Texas A&M International University)
Abstract

Corruption and income inequality have developed into a threat throughout Latin America. Their expansion generates a sense of urgency to confront the problem. Both perversely influence business decisions despite inherently sound macroeconomic reforms. Empirical evidence for twenty Latin American countries confirms a relationship between a set of political and economic variables to explain business performance. The analysis provides support that mainly corruption, rather than income inequality, adversely affects business performance. However, when taken together, both corruption and income disparities exacerbate their negative effects. Business executives must take a stance to demand minimum levels of transparency and equity.

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File URL: http://www.abante.cl/files/ABT/Contenidos/Vol-10-N2/Ortiz.pdf
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Publisher Info
Article provided by Escuela de Administracion. Pontificia Universidad Católica de Chile. in its journal ABANTE.

Volume (Year): 10 (2007)
Issue (Month): 2 ()
Pages: 127-150
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Handle: RePEc:pch:abante:v:10:y:2007:i:2:p:127-150

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Related research
Keywords: Corruption; Income distribution; Emerging markets; Latin America;

Find related papers by JEL classification:
H80 - Public Economics - - Miscellaneous Issues - - - General
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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  1. Alberto Ades & Rafael Di Tella, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September. [Downloadable!] (restricted)
  2. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  3. Vito Tanzi, 1998. "Corruption Around the World - Causes, Consequences, Scope, and Cures," IMF Working Papers 98/63, International Monetary Fund.
  4. Easterly, William & Loayza, Norman & Montiel, Peter, 1997. "Has Latin America's post-reform growth been disappointing?," Journal of International Economics, Elsevier, vol. 43(3-4), pages 287-311, November. [Downloadable!] (restricted)
    Other versions:
  5. Sanjeev Gupta & Hamid Davoodi & Rosa Alonso-Terme, 2002. "Does corruption affect income inequality and poverty?," Economics of Governance, Springer, vol. 3(1), pages 23-45, 03. [Downloadable!] (restricted)
  6. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 1998. "Corporate Ownership Around the World," NBER Working Papers 6625, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Beata K. Smarzynska & Shang-Jin Wei, 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence," NBER Working Papers 7969, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Smarzynska, Beata K. & Shang-Jin Wei, 2000. "Corruption and the composition of foreign direct investment - firm-level evidence," Policy Research Working Paper Series 2360, The World Bank. [Downloadable!]
  9. Barreto, Raul A., 2000. "Endogenous corruption in a neoclassical growth model," European Economic Review, Elsevier, vol. 44(1), pages 35-60, January. [Downloadable!] (restricted)
  10. Sheetal K. Chand & Karl Ove Moene, 1997. "Controlling Fiscal Corruption," IMF Working Papers 97/100, International Monetary Fund.
    Other versions:
  11. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank. [Downloadable!]
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