Abstract

FLORES MARQUEZ, Héctor; VALDERRAMA SANTIBANEZ, Ana Lilia  and  NEME CASTILLO, Omar. Corruption and Development in China and Latin-America. Méx.cuenca pac [online]. 2020, vol.9, n.27, pp.15-51.  Epub Dec 22, 2020. ISSN 2007-5308.  https://doi.org/10.32870/mycp.v9i27.684.

There is no clear consensus on the effects of corruption in different economic dimensions, although it is normally perceived as harmful for variables such as growth or fdi. The aim of the paper is to determine the effect of corruption on human development in Latin America and China. The methodology employed is a static data panel with the Prais-Winsten transformation with corrected standard errors for correlated panels (PCSE), and dynamic panel data from the Generalized Method of Moments (GMM) and sys-GMM, for 18 Latin American countries and China for the period 2001-2019. It is shown that corruption serves as a development constraint for most of the countries in the sample. However, for some countries like China, it is found that corruption has a positive effect. There is also a significant difference in the sensitivity of development to corruption among countries.

Keywords : corruption; Latin-America; China; HDI; CPI.

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