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

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  • JAIME ORTIZ ARIZABALO

    ()
    (Division of International Programs y College of Business Administration, Texas A&M International University)

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    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://eacc10.puc.cl/files/ABT/Contenidos/Vol-10-N2/Ortiz.pdf
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    Bibliographic 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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    Web page: http://eacc10.puc.cl/RePEc/pch/
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    Related research

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

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    1. Sheetal K. Chand & Karl Ove Moene, 1997. "Controlling Fiscal Corruption," IMF Working Papers 97/100, International Monetary Fund.
    2. 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.
    3. Bryan W Husted, 1999. "Wealth, Culture, and Corruption," Journal of International Business Studies, Palgrave Macmillan, vol. 30(2), pages 339-359, June.
    4. 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.
    5. 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.
    6. Barreto, Raul A., 2000. "Endogenous corruption in a neoclassical growth model," European Economic Review, Elsevier, vol. 44(1), pages 35-60, January.
    7. John Heilbrunn & Philip Keefer, 1999. "Assessing Political Commitment to Fighting Corruption," World Bank Other Operational Studies 11461, The World Bank.
    8. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    9. Vito Tanzi, 1998. "Corruption Around the World," IMF Working Papers 98/63, International Monetary Fund.
    10. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
    11. 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.
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