|
Corruption, privatisation and the distribution of income in
Latin America
Antonio Rodriguez & Carlyn Ramlogan
November
2007
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.
To download
the document in PDF format please
CLICK HERE. | 