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Is Corruption Really Bad for Inequality? Evidence from Latin America

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  • Carlyn Dobson

    () (Nothingam Business School)

  • Antonio Rodríguez

    () (School of Public Health, Department of Health Services Research, University of Aarhus)

Abstract

This paper 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.

Suggested Citation

  • Carlyn Dobson & Antonio Rodríguez, 2010. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Development Research Working Paper Series 02/2010, Institute for Advanced Development Studies.
  • Handle: RePEc:adv:wpaper:201002
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Is Corruption Really Bad for Inequality?
      by Ariel Goldring in Free Market Mojo on 2010-04-25 12:28:38

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    1. repec:spr:annopr:v:243:y:2016:i:1:d:10.1007_s10479-014-1567-9 is not listed on IDEAS
    2. Parcero, Osiris J. & Papyrakis, Elissaios, 2016. "Income inequality and the oil resource curse," Resource and Energy Economics, Elsevier, vol. 45(C), pages 159-177.
    3. repec:eee:ecanpo:v:55:y:2017:i:c:p:90-105 is not listed on IDEAS
    4. Perera, Liyanage Devangi H. & Lee, Grace H.Y., 2013. "Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?," MPRA Paper 52763, University Library of Munich, Germany.
    5. repec:spr:soinre:v:136:y:2018:i:1:d:10.1007_s11205-016-1534-8 is not listed on IDEAS
    6. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2012. "Inequality, corruption and the informal sector," Economics Letters, Elsevier, vol. 115(1), pages 104-107.
    7. Dimant, Eugen, 2014. "The Antecedents and Effects of Corruption - A Reassessment of Current (Empirical) Findings," MPRA Paper 60947, University Library of Munich, Germany.
    8. Scarlato, Margherita, 2012. "Social Enterprise, Capabilities and Development: Lessons from Ecuador," MPRA Paper 37618, University Library of Munich, Germany.
    9. Bienvenido Ortega & Antonio Casquero & Jesús Sanjuán, 2016. "Corruption and Convergence in Human Development: Evidence from 69 Countries During 1990–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 691-719, June.
    10. Kar, Saibal & Saha, Shrabani, 2012. "Corruption, Shadow Economy and Income Inequality: Evidence from Asia," IZA Discussion Papers 7106, Institute for the Study of Labor (IZA).
    11. Addison,Tony & Boly,Amadou & Mveyange,Anthony Francis, 2017. "The impact of mining on spatial inequality recent evidence from Africa," Policy Research Working Paper Series 7960, The World Bank.
    12. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2012. "Why is Corruption Less Harmful to Income Inequality in Latin America?," World Development, Elsevier, vol. 40(8), pages 1534-1545.
    13. repec:lde:journl:y:2017:i:87:p:9-33 is not listed on IDEAS
    14. Steve Loris Gui-Diby & Saskia Mösle, 2017. "Governance and development outcomes: re-assessing the two-way causality," MPDD Working Paper Series WP/17/06, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    15. Biswajit Mandal & Sugata Marjit, 2012. "Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation," Economics Bulletin, AccessEcon, vol. 32(3), pages 2128-2135.
    16. Pi, Jiancai & Zhou, Yu, 2013. "Institutional quality and skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 356-363.
    17. repec:col:000174:015706 is not listed on IDEAS

    More about this item

    Keywords

    Corruption; Inequality; Latin America;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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