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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Publisher Info
Article provided by Escuela de Administracion. Pontificia Universidad Católica de Chile. in its journal ABANTE.
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
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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:
Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 1999.
"Corporate Ownership Around the World,"
Journal of Finance,
American Finance Association, vol. 54(2), pages 471-517, 04.
[Downloadable!] (restricted)