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Corruption, privatisation and the distribution of income in Latin America

Author

Listed:
  • Antonio Rodriguez

    (Universidad Católica del Norte, Chile)

  • Carlyn Ramlogan

    (University of Otago, New Zealand)

Abstract

This paper presents some new evidence on income inequality in Latin America over the period 1980-1999, examining in particular the relationship between corruption, privatisation and inequality. Using a panel data methodology, we find that a reduction in corruption is associated with a rise in inequality. This suggests that while privatisation removes industries from government influence and government corruption, it worsens income inequality as new owners strive for efficiency and profits. The paper highlights the fact that structural reform policies aimed primarily at achieving positive and increasing growth rates do not adequately address the income distribution problem.

Suggested Citation

  • Antonio Rodriguez & Carlyn Ramlogan, 2007. "Corruption, privatisation and the distribution of income in Latin America," Development Research Working Paper Series 09/2007, Institute for Advanced Development Studies.
    • Handle: RePEc:adv:wpaper:200709
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    File URL: http://www.inesad.edu.bo/pdf/wp09_2007.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Población; income inequality; corruption; privatisation; panel data; Latin America; instrumental variables.;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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