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Is Corruption Really Bad for Inequality? Evidence from Latin America

  • Antonio Andres
  • Carlyn Ramlogan-Dobson

This article presents new evidence on the relationship between corruption and income inequality. Using a panel data methodology, we find that lower corruption is associated with higher income inequality in Latin America. This result is in contrast to other empirical studies but it makes sense in Latin America for a number of reasons. The finding of an inverse relationship between inequality and corruption suggests that institutional reform policies by themselves may be misguided.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 47 (2011)
Issue (Month): 7 ()
Pages: 959-976

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Handle: RePEc:taf:jdevst:v:47:y:2011:i:7:p:959-976
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